NARRBEGIN: Gamma Electronics Gamma Electronics

question 11

Multiple Choice

NARRBEGIN: Gamma Electronics
Gamma Electronics
Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment.Assume the new machine will generate after-tax savings of $250,000 per year over the next four years.
-Refer to Gamma Electronics.What's the payback period for the investment?

• A) 1.8 years
• B) 2.0 years
• C) 2.5 years
• D) 2.8 years

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Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Extrasensory Perception (ESP)

A supposed ability of the human mind to acquire information without the use of the known (sensory) channels of communication.

Photoreception

The biological process by which organisms detect and respond to light, primarily through specialized light-sensitive cells.

Precognition

The purported psychic ability to see events in the future before they happen, outside the boundaries of known physical mechanisms.