A Company with $800,000 in Operating Assets Is Considering the Purchase

question 177

Multiple Choice

A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year.The payback period for this machine in years is closest to which of the following? (Ignore income taxes in this problem.)

• A) 0.27 years.
• B) 3.75 years.
• C) 10.70 years.
• D) 40.00 years.

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Definitions:

Career Stage Model

A theoretical framework that divides an individual's career into distinct stages, each characterized by specific developmental tasks, challenges, and opportunities.

Maintenance Stage

A phase in the development of individuals, groups, or systems where the focus is on sustaining achievements and preventing regression.

Sustaining Performance

Maintaining a consistent level of effort and output over an extended period.

Facilitating Exposure

The act of making something more accessible or providing the means for its discovery or understanding.