A Company Is Considering Purchasing a Machine for $85,000

question 74

Short Answer

A company is considering purchasing a machine for $85,000. The machine is expected to generate a net after-tax income of $11,250 per year. Depreciation expense would be $8,500. What is the payback period for this machine?

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Definitions:

Racial Worldview

An outlook or perspective shaped significantly by one's beliefs and attitudes towards race and racial groups.

Catalyst

An agent or event that precipitates or significantly speeds up a change or action.

Cotton Gin

A mechanical device invented by Eli Whitney in 1793 to remove the seeds from cotton fibers, significantly impacting the cotton industry.

Africans

Refers to individuals originating from the continent of Africa, which is diverse in ethnicity, cultures, languages, and nations.