Mansi IncIs Considering a Project That Has the Following Cash Flow

question 30

Multiple Choice

Mansi Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 500 & \$ 300 & \$ 325 & \$ 350\end{array}$$

• A) 1.28 years
• B) 1.58 years
• C) 1.83 years
• D) 1.62 years
• E) 1.49 years

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Definitions:

Trade

The exchange of goods, services, or both between two or more parties.

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive, representing their net benefit.

Free Trade

International trade left to operate without tariffs, quotas, or other restrictions, allowing for the unrestricted exchange of goods and services between countries.

Autarky

A condition in which an economy is self-sufficient and does not engage in international trade.