A Project Has an Initial Cost of $6,900

question 39

Multiple Choice

A project has an initial cost of $6,900. The cash inflows are $850, $2,400, $3,100, and $4,100 over the next four years, respectively. What is the payback period?

• A) 3.73 years 
• B) 2.51 years
• C) 3.13 years 
• D) 3.51 years
• E) 3.94 years

---

Definitions:

Profit-Maximizing

The process or strategy of adjusting production and sale practices to achieve the highest possible profit.

Total Revenue

The total income received from the sale of goods or services before any expenses are subtracted.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product or service, as opposed to charging different prices based on consumer attributes or willingness to pay.

Profit-Maximizing

is the process of determining the best output and pricing levels to achieve the highest profit.