The Management of Charlton Corporation Is Considering the Purchase of a New

question 98

Multiple Choice

The management of Charlton Corporation is considering the purchase of a new machine costing $380,000.The company's desired rate of return is 6%.The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212.In addition to the foregoing information,use the following data in determining the acceptability of this investment: ​
The cash payback period for this investment is

• A) 4 years
• B) 5 years
• C) 19 years
• D) 3.3 years

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Definitions:

Investigation

The systematic inquiry or study into something for the purpose of discovering or establishing facts and reaching new conclusions.

Education

A systematic process of learning and training to acquire knowledge, skills, values, beliefs, and habits, typically through instruction in various forms such as schools, colleges, or universities.

Ethical Implications

The moral consequences or considerations that result from a particular action, decision, or policy.

Restraint Study

Research that investigates the effects of controlling or limiting certain behaviors, usually to understand aspects of self-control and compulsion.