Masulis Inc A) 240 Years
B) 2

question 89

Multiple Choice

Masulis Inc.is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $$\begin{array} { l c c c c c } \text { WACC: } & { 10.00 \% } & & & \\\text { Year } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash flows } & - \$ 925 & \$ 525 & \$ 485 & \$ 445 & \$ 405\end{array}$$

• A) 2.40 years
• B) 2.14 years
• C) 2.25 years
• D) 1.95 years
• E) 1.86 years

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Definitions:

UCC

The Uniform Commercial Code represents a detailed collection of statutes that oversee every commercial transaction across the United States.

Personal Use

Personal use refers to the use of goods or services primarily for individual rather than commercial or professional purposes.

Proceeds

Something that is exchanged for a debtor’s sold collateral.

Secured Party

A lender or creditor who has an interest in the collateral securing a loan or credit agreement.