Ambinu Flower Company Provides Flowers and Other Nursery Products for Decorative

question 45

Multiple Choice

Ambinu Flower Company provides flowers and other nursery products for decorative purposes in medium to large sized restaurants and businesses.The company has been investigating the purchase of a new specially equipped van for deliveries.The van has a value of $113,750 with a seven-year life.The expected additional cash inflows are $32,500 per year.What is the payback period for this investment?

• A) 3 years
• B) 3.5 years
• C) 6 years
• D) 4 years

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Definitions:

Raises

To lift or move to a higher position or level.

EMG

Electromyography, a diagnostic procedure to assess the health of muscles and the nerve cells that control them.

Muscular Coordination

The harmonious functioning of muscles or groups of muscles in the execution of movements.

MD

An abbreviation for Doctor of Medicine, a professional doctoral degree for physicians and surgeons.