Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1$375,000Year 2$350,000Year 3$285,000Year 4$230,000Year 5$185,000?What is the payback period?
A. 2.39 years
B. 2.96 years
C. 3.51 years
D. 3.00 years
Answer: B
You might also like to view...
A company's interest expense is $15,000. Its income before interest expense and income taxes is $86,250. Its net income is $31,900. The company's times interest earned ratio equals:
A. 0.37. B. 0.47. C. 5.75. D. 2.70. E. 0.174.
Mass marketers such as Target and Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting?
A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) niche marketing
Eric is a manager at a local café. Eric frequently receives complaints about his staff and the overall customer satisfaction is low. Eric recognizes the need for change, but fears that his staff will be hesitant to embrace change in the culture they have created. At what stage in Lewin’s change model is Eric’s cafe in?
a. freezing b. unfreezing c. refreezing d. moving
Local unions are charted by a _____________________________ which often has final authority over the local union's actions.
Fill in the blank(s) with the appropriate word(s).