Heidi Company Is Considering the Acquisition of a Machine That

question 113

Multiple Choice

Heidi Company is considering the acquisition of a machine that costs $420,000.The machine is expected to have a useful life of 6 years,a negligible residual value,an annual net cash flow of $120,000,and annual operating income of $83,721.What is the estimated cash payback period for the machine?

• A) 3.5 years
• B) 5 years
• C) 5.1 years
• D) 4 years

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Definitions:

Social Processes

Encompass the ways in which individuals and groups interact, change, and develop within a society.

Urban Populations

The demographic segment of people living in cities and towns, as opposed to rural areas, often associated with higher density of human structures and infrastructure.

Differentiation

In the theory of human ecology refers to the process by which urban populations and their activities become more complex and heterogeneous over time.

Demographic Research

The study of human populations, including their size, growth, density, distribution, and statistics regarding birth, marriage, disease, and death.