RentitAll Management Services Is Considering an Investment of $60,000 Cost of Capital Is 18 Percent

question 35

Multiple Choice

RentitAll Management Services is considering an investment of $60,000. Data related to the investment are as follows: $$\begin{array} { c c } \text { Year } & \text { Cash Flow } \\\hline 1 & \$ 20,000 \\2 & 24,000 \\3 & 30,000 \\4 & 40,000 \\5 & 20,000\end{array}$$
Cost of capital is 18 percent. What is the payback period in years approximated to two decimal points, assuming no taxes are paid?

• A)3.00
• B)2.53
• C)2.00
• D)2.22

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Definitions:

Paraphyletic Clade

A group of organisms that includes an ancestral species and some, but not all, of its descendants.

Tetrapods

Vertebrate animals with four limbs, or descent from such organisms, including amphibians, reptiles, mammals, and birds.

Lobe-Finned Fish

A group of fish characterized by fleshy, lobed, paired fins, which are precursors to the limbs of land vertebrates.

Wrist Bones

The small bones that make up the human wrist, contributing to its complex range of motion and dexterity.