Given the Following Cash Flows for Project Z: C0 =

question 55

Multiple Choice

Given the following cash flows for project Z: C0 = -1,000, C1 = 600, C2 = 720 and C3 =
2000, calculate the discounted payback period for the project at a discount rate of 20%.

• A) 1 year
• B) 2 years
• C) 3 years
• D) None of the above

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Definitions:

Accounts Payable

Liabilities of a company representing money owed to creditors for goods and services purchased on credit.

Cash

The most liquid form of financial assets, readily available for transactions or any immediate need.

Common Stock

A type of financial security that represents ownership in a corporation, giving holders a share of the firm's profits and voting rights.

Accounts Payable

Accounts payable are liabilities or amounts owed by a company to its creditors for goods and services purchased on credit.