NARRBEGIN: Gamma Electronics Gamma Electronics

question 76

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.If the firm has a 15% cost of capital,what's the discount payback period of the investment?

• A) 1.5 years
• B) 2.0 years
• C) 2.4 years
• D) 2.6 years

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The outcomes or scores obtained from administering a test, reflecting the performance or abilities of the test takers.

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