Pro-Am Audio Is a Company That Is Contracted to DJ

question 27

Multiple Choice

Pro-Am Audio is a company that is contracted to DJ private events. Due to a recent increase in bookings, Pro-Am is considering the purchase of another mobile DJ unit. Pro-Am uses the payback method to evaluate its investments. The mobile DJ unit will cost $18,000, has a useful life of 14 years, and will generate $6000 in net cash inflows per year. The residual value of the unit is $800. What is the payback period for the mobile DJ unit?

• A)3)13 years
• B)2)87 years
• C)3)00 years
• D)2)65 years

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Definitions:

Respondeat Superior

A legal doctrine that holds employers legally responsible for the actions of their employees performed in the course of employment.

Strict Liability

A legal principle where a party is held responsible for damages or loss, regardless of fault or intent, based solely on their involvement in the activity.

Daubert V.Merrell Dow

A landmark United States Supreme Court case that determined the standard for admitting expert testimony in federal courts.

Rule 702

A regulation in the Federal Rules of Evidence concerning the admissibility of expert witnesses' testimonies in United States courts.