A Company Is Considering Purchasing a Machine for $21,000

question 9

True/False

A company is considering purchasing a machine for $21,000.The machine will generate income from operations of $2,000; annual net cash flows from the machine will be $3,500.The payback period for the new machine is 6 years.

---

Definitions:

Shaded Pole

A type of single-phase induction motor design that uses a shaded pole for starting torque, commonly found in low-power applications.

Split-phase

A type of electrical power supply system that divides the electric power into two or more alternating current (AC) voltages.

Stepping Motor

A motor designed to move in discrete steps, enabling precise control over its motion and position.

Output Shaft

The shaft on a machine or engine that transfers power to the driven components.