A company with $600,000 in operating assets is considering the purchase of a machine that costs $72,000 and that's expected to reduce operating costs by $18,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine is closest to years.
A. 33.3
B. 4
C. 8.3
D. 0.25

B. 4 years

Step-by-step explanation:

Data provided as per the requirement of the payback period is here below:-

Investment = $72,000

Cash inflow each year = $18,000

The computation of the payback period for this machine in years is shown below:-

Payback period =

=

= 4 years

Therefore for computing the payback period we simply applied the above formula.

distance covered by pamela in 9 l of fuel = 99km

let us apply unitary method here.

distance covered by pamela in 1 l of fuel =99/9 =11 km

now let us find distance covered by pamela if she has 12 l of fuel.

distance covered in 12 l = distance covered in 1 l of fuel * 12

we know that distance covered by here in 1 l is 11 km.

so distance covered in 12 l of fuel = 11*12 = 132 km.

step-by-step explanation:

answers available in this download

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