EKG, IncIs Considering a New Project That Will Require an Initial

question 31

Multiple Choice

EKG, Inc.is considering a new project that will require an initial cash investment of $419,000.The project will produce no cash flows for the first two years.The projected cash flows for Years 3 through 7 are $69,000, $98,000, $109,000, $145,000, and $165,000, respectively.How long will it take the firm to recover its initial investment in this project?

• A)3.81 years
• B)3.98 years
• C)5.57 years
• D)5.99 years
• E)The project never pays back.

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Definitions:

Gametes

Mature haploid male or female germ cells which are able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Sporophyte Generation

The 2n, spore-producing stage in the life cycle of a plant. Compare with gametophyte generation.

Liverworts

A phylum of spore-producing, nonvascular, thallose or leafy plants with a life cycle similar to that of mosses.

Club Mosses

A phylum of seedless vascular plants with a life cycle similar to that of ferns.