First Choice Carpets Is Considering Purchasing New Weaving Equipment Costing

question 38

Multiple Choice

First Choice Carpets is considering purchasing new weaving equipment costing $730,000. The company's management has estimated that the equipment will generate cash inflows as follows: $$\begin{array} { | r | r | } \hline \text { Year } 1 & \$ 204,000 \\\hline 2 & 204,000 \\\hline 3 & 266,000 \\\hline 4 & 266,000 \\\hline 5 & 150,000 \\\hline\end{array}$$ Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.)

• A) 4.61 years
• B) 3.21 years
• C) 3.42 years
• D) 3.70 years

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Definitions:

Postmodern Environmentalism

A movement or perspective that critiques traditional environmentalism, emphasizing the role of ideology, media, and consumer culture in shaping environmental issues.

Climate Justice

A perspective that frames global warming as a moral issue, proposing that those who are least responsible for climate change tend to suffer its worst consequences.

Bisphenol A (BPA)

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Modern Environmental Movement

Beginning in the 1960s, the second major stage of the environmental movement; focused on the environmental consequences of new technologies, oil exploration, chemical production, and nuclear power plants.