It Will Cost $6,000 to Acquire an Ice Cream Cart

question 63

Multiple Choice

It will cost $6,000 to acquire an ice cream cart.Cart sales are expected to be $3,600 a year for three years.After the three years,the cart is expected to be worthless as the expected life of the refrigeration unit is only three years.What is the payback period?

• A)1.48 years
• B)1.67 years
• C)1.82 years
• D)1.95 years
• E)2.00 years

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Definitions:

Predominant Use

The primary application or most frequent usage of an object, concept, or process within a particular context or environment.

Compensation System

A set of policies and mechanisms for determining employee wages, benefits, and bonuses based on various factors such as job role, market rates, and performance.

Implementation Task Forces

Special groups or teams formed within an organization to execute and monitor the implementation of specific projects or strategic initiatives.

Compensation Level

The scale or amount of wages, salaries, and benefits that employees receive, which can vary based on position, experience, competence, and market factors.