A Company Is Considering the Purchase of a New Machine

question 112

Multiple Choice

A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $16,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $8,000 per year plus depreciation of $4,000 per year. The company's tax rate is 40%. What is the payback period for the new machine?

• A) 3.0 years.
• B) 6.0 years.
• C) 7.5 years.
• D) 12.0 years.
• E) 20.0 years.

Understand approaches to union avoidance and their implications.

Grasp the concept of union representation and its scope.

Recognize the importance of rank-and-file participation in union activities.

Understand the principles and models of union representation, including the servicing and organizing models.

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Definitions:

X-Rays

Electromagnetic radiation of high energy and very short wavelength, which is able to pass through many materials opaque to light, used especially for taking images of the inside of objects.

Cinemato

Likely related to cinematography or the art of making motion pictures, though not a common term on its own.

Nucl

Likely a shorthand or abbreviation for "nuclear," generally related to fields or substances associated with atomic nuclei, such as in nuclear medicine.

Fluor/o

A combining form used in medical terminology referring to fluoride or fluorine.