Anselmo Corp

question 60

Multiple Choice

Anselmo Corp. is considering the purchase of a new machine for $76,000. The machine would generate an annual cash flow of $23,214 for five years. At the end of five years, the machine would have no salvage value. The company's cost of capital is 12 percent. The company uses straight-line depreciation with no mid-year convention. What is the payback period in years for the machine approximated to two decimal points, assuming no taxes are paid?

• A)3.00
• B)3.27
• C)9.48
• D)4.00

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Definitions:

Desires

Strong feelings of wanting or wishing for something to happen or be the case.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Cognitive Development

The process of growth and change in intellectual capabilities such as thinking, reasoning, and understanding, throughout the lifespan.

Increasing Fussiness

A gradual increase in irritability or restlessness, often observed in infants as a response to discomfort or unmet needs.