Use the Information for the Question(s) Below

question 46

Multiple Choice

Use the information for the question(s) below.

-A florist is buying a number of motorcycles to expand its delivery service. These will cost $78,000 but are expected to increase profits by $3000 per month over the next four years. What is the payback period in this case?

• A) 10.40 months
• B) 15.60 months
• C) 19.50 months
• D) 26.00 months

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Definitions:

Tax Services

Professional services provided by experts to help individuals or organizations prepare and file taxes, and offer advice on tax planning and compliance.

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed, after all deductions and exemptions.

Average Tax Rate

The percentage of income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Total Tax

The sum of all taxes owed by an individual or entity to the government in a fiscal year, including federal, state, and local taxes.