What is the payback period for bonita co

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Reference no: EM132964344

Problem 1: If you want to know the amounts a company used to calculate, 'Cost of goods manufactured,' where would you look?

a. on the Income Statement

b. on the Balance Sheet

c. on both the Balance Sheet and Income Statement

d. only in the managerial accounting records

Problem 2: Bonita Co. is considering purchasing a new machine which will cost $175000, but which will decrease costs each year by $50000. The useful life of the machine is 10 years. The machine would be depreciated straight-line with no residual value over its useful life at the rate of $17500/year. The payback period is

a. 4.5 years.

b. 4.0 years.

c. 3.5 years.

d. 10 years.

Reference no: EM132964344

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