Jimba's, Inc

question 67

Multiple Choice

Jimba's, Inc., has purchased a new donut maker. It cost $20,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected: Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period on the new machine is closest to:

• A)6.0 years
• B)2.9 years
• C)4.0 years
• D)4.3 years

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Definitions:

Echoic

Pertaining to or characterized by echo; in psychology, it refers to the sensory memory of auditory stimuli.

Procedural

Relating to the process or method of performing a task, often detailing the step-by-step instructions necessary to complete it successfully.

Sensory Memory

It is the most fleeting aspect of memory, enabling the retention of sensory impressions even after the initial stimuli are no longer present.

Permanent Storehouse

A metaphorical term often used to describe long-term memory, where information is stored indefinitely.