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:

Likert-Type Scales

A response scale used in surveys to gather information on a participant's level of agreement or preferences towards a statement.

Human Communication

The process by which individuals share information, ideas, or feelings through verbal or non-verbal means.

Reliability

Reliability in research refers to the consistency or repeatability of a measure or test; a reliable measure produces similar results under consistent conditions.

Measurement

The process of finding out whether people (or media content) have more or less of an attribute we are interested in. It is done by assigning numbers to the phenomena we are interested in.