The Net Initial Investment for a New Mainframe Computer Is

question 111

Multiple Choice

The net initial investment for a new mainframe computer is $2,000,000.Annual cash flows are expected to increase by $800,000 per year.The equipment has a 10-year useful life.What is the payback period?

• A)4.00 years
• B)2.50 years
• C)2.00 years
• D)1.75 years
• E)0.75 years

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Definitions:

Monetary Data

Information or records relating to the management, exchange, value, and use of money.

Database

A structured collection of data stored in a computer system, allowing for efficient retrieval, insertion, and management of data.

Automatically Creates

Refers to a process or operation that is executed by a system or software without manual initiation by the user.

Unique Identifier

A specific identifier assigned to a single entity in a system, ensuring that each entity is distinguishable from others.