A Company Is Planning to Purchase a Machine That Will

question 34

True/False

A company is planning to purchase a machine that will cost $24,000, have a six-year life, and have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. Total income over the life of the machine is estimated to be $12,000. The machine will generate cash flows per year of $6,000. The payback period for the machine is 12 years.

---

Definitions:

Root Pressure

A pressure within the vascular system of the roots of plants that helps drive fluids upwards into the stem and leaves.

Water Potential

A measure of the potential energy in water, influencing its movement from areas of higher water potential to areas of lower water potential.

Hardwood

Wood from dicot trees, typically denser and used for construction, furniture, and high-quality flooring.

Gymnosperms

A collection of plants capable of producing seeds, encompassing conifers, cycads, Ginkgo, and gnetophytes, distinguished by their exposed or "naked" seeds.