Pearl Manufacturing Company Provides Glassware Machines for Major Department Store

question 112

Multiple Choice

Pearl Manufacturing Company provides glassware machines for major department store retailers.The company has been investigating a new piece of machinery for its production department.The old equipment has a remaining life of five years and the new equipment has a value of $239,400 with a five-year life.The expected additional cash inflows are $63,000 per year.What is the payback period for this investment?

• A) 2.5 years
• B) 4.5 years
• C) 3.8 years
• D) 5 years

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Definitions:

Written Communication

The process of conveying messages or information through written symbols, texts, or documents.

Uncertainty

The state of having limited knowledge where it is impossible to accurately predict outcomes or future events.

Medium Richness

pertains to the ability of a communication medium to convey messages effectively, balancing immediacy, feedback, and personalization.

Personalized Feedback

Customized responses or evaluations based on an individual's performance or behavior.