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

question 96

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 10.5 years.

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Definitions:

Contamination

The presence of an unwanted substance or material that makes something impure, unsafe, or infected.

Orderliness

A personality trait characterized by a desire for neatness, predictability, and organization in one's environment and activities.

Violence

The intentional use of physical force or power, threatened or actual, that either results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.

Sexuality

A complex integration of biological, emotional, social, and psychological factors that influence an individual's sexual feelings, thoughts, and behaviors.