Equipment a Costing $80 000 Is Expected to Generate $12

question 18

Multiple Choice

Equipment A costing $80 000 is expected to generate $12 000 annually in cash inflows during its life of 8 years. Equipment B costing $120 000 is expected to generate $17 000 annually in cash inflows during its life of 8 years. Equipment C costing $60 000 is expected to generate $8000 annually in cash inflows during its life of 9 years. Rank the three investments in terms of payback period.

• A) A1, B2, C3.
• B) B1, A2, C3
• C) A1, B2, C3
• D) C1, A2, B3

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Definitions:

Plasma Testosterone

The concentration of testosterone, a primary male sex hormone, present in the blood plasma.

Dominating

Exerting control or influence over others in an assertive or aggressive manner.

Displaced Aggression

Describes a psychological phenomenon where individuals direct their aggressive feelings or behaviors towards an object or person other than the source of their frustration.

Domestic Violence

A pattern of behavior in any relationship that is used to gain or maintain power and control over an intimate partner.