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NEW QUESTION: 1
Using the following information calculate the payback period
Purchase Price = $50,000
Life span of new machine = 7 years
Annual earnings before depreciation and tax = 20,000
A. 4.5 Years
B. 17.5 Years
C. 2.5 Years
D. .4 Years
Answer: C
Explanation:
Payback Period = Initial cash investment/ annual net cash income=50000/20000= 2.5 years

NEW QUESTION: 2
Under Renegotiations, extensions, and assumptions-12 CFR 213.5; any lease that is
renegotiated or extended by longer than six months is considered to be a new lease,
subject to new disclosure requirements, except when:
A. One or more payments are deferred, whether or not there is a charge for the deferral
B. Lease property is substituted with property of substantially equivalent or greater value, if no other lease terms are changed
C. There is an agreement resulting from a pre-order
D. In a multiple-item lease, property
is added, deleted, or substituted provided the average periodic payment does not change by more than 35 percent
Answer: A,B

NEW QUESTION: 3
Documentation is a substantial part of the evidence for Service Management What is a best practice relating to documentation?
A. Documentation should be stored at a central place and be only accessible via procedures
B. Documentation should refer to the requirements of ISO/EC 20000 for audit purposes.
C. Documentation should be protected from damage due to IT related disasters.
D. Documentation should be kept at least five years for auditing purposes.
Answer: C