Solutions Inc

question 66

Multiple Choice

Solutions Inc.would like to purchase a new production machine for $300,000.The machine is expected to have a life of four years,and a salvage value of $50,000.Annual maintenance costs will total $30,000.Annual labor and material savings are predicted to be $150,000.The company's required rate of return is 6 percent.
What is the payback period for this investment (round to the nearest month) ?

• A)3 year,5 months.
• B)2 years,5 months.
• C)2 years,6 months.
• D)3 years,6 months.
• E)None of the answer choices is correct.

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Definitions:

Distributive Negotiations

A negotiation strategy where parties view the available resources as fixed and limited, leading to a competitive scenario where each aims to secure the largest share.

Cooperative

Refers to a scenario or action in which individuals or organizations work together towards a common goal or benefit.

Commitment Statement

A declaration or promise to engage in a specific action or uphold a particular stance or policy.

Specificity

Specificity in negotiations involves being clear and precise about demands, needs, or terms within the negotiation process.