An Investment of $270,000 Is Expected to Generate $140,000 in Cost

question 126

Multiple Choice

An investment of $270,000 is expected to generate $140,000 in cost savings annually over the asset's three year life.Assume straight-line depreciation is used.Ignore income taxes.What is the payback period?

• A)0.75 years
• B)1.93 years
• C)2.40 years
• D)3.00 years

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Definitions:

Moro Reflex

A startle reflex seen in newborns, which involves flinging the arms outwards and then hugging themselves, in response to a feeling of falling or loud noises.

Palmer Grasp

An infantile reflex that involves the curling of fingers around an object placed in the palm of the hand.

Rooting

An instinctual reflex in babies that prompts them to turn their head toward a touch on their cheek or mouth area, assisting in breastfeeding.

Western Industrialized

Referring to countries in the Western Hemisphere that have highly developed economies, industries, and infrastructures.