A company with $600,000 in operating assets is considering the purchase of a machine that costs $72,000 and that's expected to reduce operating costs by $18,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine is closest to years.
A. 33.3
B. 4
C. 8.3
D. 0.25

B. 4 years

Step-by-step explanation:

Data provided as per the requirement of the payback period is here below:-

Investment = $72,000

Cash inflow each year = $18,000

The computation of the payback period for this machine in years is shown below:-

Payback period =

=

= 4 years

Therefore for computing the payback period we simply applied the above formula.

The correct answer is:  [B]:  " True ".

Note:  From visual inspecton of the graph shown — [Note:  all images attached refer to the same graph.] :
 
→  We can see that when "x = -2"  ;  there is only one value for "y" ;  and then the "line" of the graph stops for any coordinate corresponding to any "x-value" LESS THAN "-2" ; 

 →  and that there are corresponding "y-coordinates" corresponding to any "x-value that is equal to "-2" and "GREAT THAN  "-2" .