Resnick Inc A $1.42$ Years
B $1.58$ Years
C $1.75$ Years
D $1.93$ Years
E

question 55

Short Answer

Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback?
$\begin{array}{c}\begin{array}{lll} \text {Year}\\\text {Cash flows}\end{array}\begin{array}{lll} 0 \\\hline -\$350\end{array}\begin{array}{lll}1 \\\hline \$200\end{array}\begin{array}{lll}2 \\\hline \$200\end{array}\begin{array}{lll}3 \\\hline \$200\end{array}\end{array}$

a. $1.42$ years
b. $1.58$ years
c. $1.75$ years
d. $1.93$ years
e. $2.12$ years

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Definitions:

Preferences

Individual tastes or desires that influence choice behavior, guiding decisions in the face of scarcity.

Market Prices

The current price at which a good or service can be bought or sold, determined by supply and demand dynamics in a competitive marketplace.

Market Baskets

A collection of goods and services used to represent consumption patterns for economic analysis.

Total Utility

The cumulative satisfaction or pleasure a consumer derives from consuming a certain quantity of goods and services.