An Investment Project Has the Cash flOw Stream of £-250

question 57

Multiple Choice

An investment project has the cash flow stream of £-250, £75, £125, £100, and £50.The cost of capital is 12%.What is the discounted payback period?

• A)3.15 years.
• B)3.38 years.
• C)3.45 years.
• D)3.60 years.
• E)4.05 years.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, indicating the net profit or loss.

Owner's Equity

Owner's equity represents the owner's claim to the assets of a business after all liabilities have been subtracted.