Multiple Choice
A drill press costing $100 000, with a $10 000 residual value and a 10-year useful life, will reduce operating cash outflows by $25 000 per year. The payback period for the drill press is:
A) 4 years.
B) 5 years.
C) 6.25 years.
D) 3.6 years.
Correct Answer:
Verified
Correct Answer:
Verified
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