Susmel Inc $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 475 & \$ 150 & \$ 200 & \$ 300\end{array}$$

question 45

Multiple Choice

Susmel Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 475 & \$ 150 & \$ 200 & \$ 300\end{array}$$

• A) 2.42 years
• B) 1.96 years
• C) 2.88 years
• D) 2.47 years
• E) 2.85 years

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Definitions:

Without Reserve

In an auction context, it refers to the selling of items without any minimum bid requirement, allowing the sale to the highest bidder regardless of the bid amount.

Auctioneer

A person authorized to conduct auctions, responsible for accepting bids and declaring goods sold.

Statute Of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party to be charged, to prevent fraud and perjuries.

Oral Modification

An agreement to change the terms of a contract using spoken words rather than written documentation.