Crane Company Is Considering the Acquisition of a Machine That

question 48

Multiple Choice

Crane Company is considering the acquisition of a machine that costs $60,000. The machine is expected to have a useful life of 5 years, a negligible residual value, an annual cash flow of $15,000, and annual operating income of $15,000. What is the estimated cash payback period for the machine?

• A) 1.7 years
• B) 3 years
• C) 4 years
• D) 5 years

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Hallucinations

Hearing or seeing things that are not there.

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary, often symptomatic of psychiatric disorders.

Bulimia Nervosa

An eating disorder marked by binge eating followed by purging, through methods such as vomiting or the use of laxatives, to prevent weight gain.