If an Asset Costs $16,000, Has an Expected Useful Life

question 26

Multiple Choice

If an asset costs $16,000, has an expected useful life of 8 years, is expected to have a $2,000 salvage value and generates net annual cash inflows of $2,000 a year, the cash payback period is

• A)8 years.
• B)7 years.
• C)6 years.
• D)5 years.

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Definitions:

Film Rating System

A standardized framework for classifying films based on their suitability for different audiences, typically based on content such as violence, sexuality, or language.

MPAA

The Motion Picture Association of America, an organization that rates films based on their content to provide viewers with an idea of their suitability for different audiences.

Jack Valenti

A prominent American political advisor, lobbyist, and former President of the Motion Picture Association of America, known for creating the modern film rating system.

3-D Film Technology

A filmmaking technique that creates the illusion of three-dimensional depth from two-dimensional images.