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

---

Definitions:

Endocrine Glands

Glands that secrete hormones directly into the bloodstream to regulate various body functions.

Variety of Hormones

Refers to the diverse group of chemical messengers produced by endocrine glands that regulate bodily functions, including growth, metabolism, and reproduction.

Short-Term Memory

The part of the memory system where small amounts of information can be stored for brief periods.

Primary Tasks

The main or central duties and responsibilities that need to be executed within a role or job.