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

question 145

True/False

A company is considering purchasing a machine for $21,000. The machine will generate income from operations of $2,000; annual cash flows from the machine will be $3,500. The payback period for the new machine is 10.5 years.

---

Definitions:

Behavioral Activation

A therapy approach that focuses on helping individuals engage more in their valued life activities as a way to combat depression.

Cognitive Therapy

A form of psychotherapy that emphasizes the identification and restructuring of negative and distorted thinking patterns to change emotional responses and behaviors.

Medication Treatment

The use of pharmaceutical drugs to alleviate symptoms, treat, or manage medical or psychological conditions.

Depression

A common mental health disorder characterized by persistent sadness, loss of interest in activities, and a variety of emotional and physical problems.