Use the Table for the Question(s) Below -The Payback Period for Project a Is Closest To?
A)

question 62

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
$\begin{array} { l c c c c c c } \hline \text { Project } & \begin{array} { c } \text { Year 0 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 1 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 2 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 3 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Year 4 } \\\text { Cash Flow }\end{array} & \begin{array} { c } \text { Discount } \\\text { Rate }\end{array} \\\hline \mathrm { A } & - 100 & 40 & 50 & 60 & \text { N/A } & 0.15 \\\hline \mathrm { B } & - 73 & 30 & 30 & 30 & 30 & 0.15 \\\hline\end{array}$
-The payback period for project A is closest to?

• A) 2.5 years
• B) 2.2 years
• C) 2.0 years
• D) 2.4 years

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in maintaining the business.

Punch List

A document listing work that does not conform to contract specifications, needing completion or correction before project finalization.

Supplier Obligations

Legal or contractual responsibilities that a supplier must fulfill in relation to the delivery of goods or services.

Contract

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or service.