Paramount Carpets Company Is Considering Purchasing New Equipment Costing $700,000

question 4

Multiple Choice

Paramount Carpets Company is considering purchasing new equipment costing $700,000.The company's management has estimated that the equipment will generate cash flows as follows: Considering the residual value is zero,calculate the payback period.

• A)4.5 years
• B)3.2 years
• C)3.5 years
• D)3.8 years

---

Definitions:

Indirect Approach

A communication method where the main point or request is not presented directly at the beginning but is instead gradually led up to, often used to soften the delivery of less favorable news or requests.

Explanation Section

A segment of a document or presentation dedicated to clarifying, detailing, or justifying a specific point, idea, or procedure.

Indirect Approach

A method of dealing with a situation or problem by not addressing it directly.

Supervisory Role

A position of authority overseeing the work of others, ensuring tasks are completed appropriately and efficiently.