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:

PPE

Abbreviation for Personal Protective Equipment, which includes garments and gear used to protect the wearer from injury or infection.

Coughing Uncontrollably

A forceful and often repetitive reflex that helps clear the airways of irritants but may indicate a medical condition when persistent.

Surgical Site

An anatomical location on the body where surgery is performed.

Infection

A disease caused by the entrance of pathogens into the body, leading to a harmful biological response by the host.