Given the Following Cash Flows for Project A: C0 =

question 32

Multiple Choice

Given the following cash flows for project A: C0 = -1000, C1 = +600 ,C2 = +400, and C3 =
+1500, calculate the payback period.

• A) One year
• B) Two years
• C) Three years
• D) None of the above

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Definitions:

Business Plan

A detailed document outlining the goals, strategies, financial forecasts, and operational structures of a business intended to guide its growth and success.

Funds

Financial resources that are allocated for a specific purpose, project, or investment.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own property, separate from its individual members.

Corporation

A legal entity formed by a group of individuals to conduct business or other activities, recognized as separate from its owners with its own rights and liabilities.