A Project Has an Initial Cost of $1,900

question 201

Multiple Choice

A project has an initial cost of $1,900. The cash inflows are $0, $500, $900, and $700 over the next four years, respectively. What is the payback period?

• A) 2.71 years
• B) 2.98 years
• C) 3.11 years
• D) 3.71 years
• E) never

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Definitions:

Subsidiary Accounts

Ledger accounts that provide detailed information supporting summary-level entries in the general ledger and control accounts.

Special Journal

A type of accounting journal designated for recording a particular type of transaction in a more efficient manner.

Special Journals

Customized accounting journals used for recording and categorizing specific types of financial transactions.

General Journal

A comprehensive listing of a company's financial transactions, used as the primary record for posting to individual accounts.