Question
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 6 years with no
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 6 years with no salvage value at the end of the 6 years. Ataxia's internal rate of return on this equipment is 5%. Ataxia's discount rate is also 5%. The payback period on this equipment is closest to (Ignore income taxes.):
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
Brewer_8e_Rechecks_2019_10_14
Multiple Choice
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6.000 years
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5.076 years
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3.000 years
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6.176 years
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