Julius Company Is Considering the Purchase of a New Machine

question 91

Multiple Choice

Julius Company is considering the purchase of a new machine for $100,000.The machine generates annual revenues of $62,500 and annual expenses of $37,500, which includes $7,500 of depreciation.What is the payback period in years on the machine approximated to one decimal point?

• A) 1.6
• B) 3.1
• C) 4.0
• D) 1.7

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Definitions:

Apgar Score

A quick test performed on a newborn at 1 and 5 minutes after birth assessing heart rate, respiration, muscle tone, reflex response, and color to evaluate the physical condition.

Immediate Resuscitation

Emergency medical response aiming to revive someone from unconsciousness or near death.

Apgar Score

A quick test performed on a newborn baby at 1 and 5 minutes after birth to assess their physical condition and determine any immediate need for extra medical or emergency care.

Cerebral Palsy

A group of permanent movement disorders that appear in early childhood, affecting muscle tone, posture, and movement as a result of damage to the brain before, during, or just after birth.