Use the Information Below to Answer the Following Question(s)

question 5

Multiple Choice

Use the information below to answer the following question(s) .
Boyle Company is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:

-Richol Corporation is considering an investment in new equipment costing $180,000. The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $45,000 the first year, $65,000 the second year, and $90,000 every year thereafter until the fifth year. What is the payback period for this investment? The equipment has no residual value.

• A) 2.00 years
• B) 2.37 years
• C) 2.78 years
• D) 4.00 years

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Definitions:

General-Duty Clause

A provision that requires employers to provide a workplace free from recognized hazards that could cause harm to employees.

Americans With Disabilities Act

A legal statute that forbids the unequal treatment of people with disabilities, covering various public sectors like employment, education, transit, and both public and private venues accessible to the public.

Safety Violations

Instances where safety regulations and standards are not followed, risking the health and safety of individuals.