Payback period method for the acquisition of equipment

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Reference no: EM131986687

When calculating the payback period method for the acquisition of equipment, the most critical assumption is:

a) useful life.

b) volume of usage.

c) interest rate.

d) All of these are correct.

2. If volume rises or falls:

a) variable costs will not change.

b) fixed costs will not change (within a wide range).

c) variable costs will change.

d) fixed costs will change.

3. True or False? The prorated real estate taxes typically represent an expense to be reported in the current year.

True

False

Reference no: EM131986687

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