Gateway Graphics Is Considering an Investment in New Printing Equipment

question 17

Multiple Choice

Gateway Graphics is considering an investment in new printing equipment costing $502,000.The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $122,000 the first year,$158,000 the second year,and $160,000 every year thereafter until the fifth year.What is the payback period for this investment? The residual value is zero.(Round your answer to two decimal places.)

• A) 4.30 years
• B) 3.39 years
• C) 2.80 years
• D) 3.11 years

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Definitions:

Cardiorespiratory Fitness

A measurement of how well the body’s circulatory and respiratory systems supply oxygen to muscles during sustained physical activity.

Metabolic Cart

A device used to measure the consumption of oxygen and production of carbon dioxide, commonly used in metabolic research.

Emotional Wellness

The ability to successfully handle life's stresses and adapt to change and difficult times.

Mood-enhancing Chemicals

Natural or synthetic substances that can alter mood and emotional states, often influencing feelings of happiness and well-being.