McGlothin Inc $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,150 & \$ 500 & \$ 500 & \$ 500\end{array}$$

question 61

Multiple Choice

McGlothin Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,150 & \$ 500 & \$ 500 & \$ 500\end{array}$$

• A) 1.86 years
• B) 2.07 years
• C) 2.30 years
• D) 2.53 years
• E) 2.78 years

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