A Project with an Initial Cost of $450,000 Is Expected

question 59

Multiple Choice

A project with an initial cost of $450,000 is expected to generate returns of $80,000 per year for each of the next five years. What is the project's payback period?

• A) 5.6 years
• B) 5.0 years
• C) 0.17 years
• D) The investment will never be recovered.

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Definitions:

Original Prices

The initial cost of goods or services before any discounts, promotions, or changes.

Bureau of Fisheries

A government agency responsible for the regulation and oversight of fishing activities, management of fish populations, and conservation of aquatic habitats.

Fishing License

A regulatory or legal authorization required to fish in certain areas, used to manage and conserve fish stocks and control fishing practices.

Income

Sum of money regularly obtained through one's job or investment decisions.