(Ignore Income Taxes in This Problem

question 26

Multiple Choice

(Ignore income taxes in this problem.) Isomer Industrial Training Corporation is considering the purchase of new presentation equipment at a cost of $150,000. The equipment has an estimated useful life of 10 years with an expected salvage value of zero. The equipment is expected to generate net cash inflows of $35,000 per year in each of the 10 years. Isomer's discount rate is 16%. Isomer uses the straight-line method of depreciation for its assets.
-What is the payback period of the presentation equipment?

• A) 2.3 years
• B) 3.0 years
• C) 4.3 years
• D) 5.8 years

---

Definitions:

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing the importance of observable actions over internal processes.

Blindsight

A phenomenon in which people who are perceptually blind in a certain area of their visual field demonstrate some response to visual stimuli.

Selective Attention

The cognitive process of focusing on a specific aspect of the environment while ignoring other perceivable information.

Change Blindness

A phenomenon where an observer does not notice significant changes in a visual scene, indicating limitations in attention and perception.