Evergreen Lawnmowers Is Considering the Purchase of a New Machine

question 11

Multiple Choice

Evergreen Lawnmowers is considering the purchase of a new machine costing $814,000.The company's management is estimating that the new machine will generate additional cash inflows of $194,000 a year for ten years and have a residual value of $52,000 at the end of ten years.What is the machine's payback period? (Round your answer to two decimal places.)

• A) 4.20 years
• B) 6.37 years
• C) 3.33 years
• D) 5.22 years

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Definitions:

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, which serve as a major energy source in the diet of animals, including humans.

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, and sleep, among other physiological processes, often associated with feelings of well-being and happiness.

Higher-fat Diet

A diet that contains a higher proportion of fat in comparison to carbohydrates and proteins, sometimes utilized for specific health conditions or dietary preferences.

Higher-sugar Diet

A dietary pattern characterized by the consumption of foods and beverages with high levels of added sugars.