What Is the Payback Period of a Project That Requires

question 35

Multiple Choice

What is the payback period of a project that requires an initial cash outlay of $16,000 and provides cash flows of $4,500 in year 1, $5,500 in year 2, $6,500 in year 3, and $7,500 in year 4? Assume the appropriate discount rate is 10%.

• A)2.08 years
• B)2.36 years
• C)2.68 years
• D)2.92 years

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Definitions:

Visceral Peritoneum

The layer of the peritoneum that covers the external surfaces of most abdominal organs, providing a protective coating.

Periodontal Ligament

Connective tissue that surrounds the tooth root and attaches it to its bony socket.

Pulp Cavity

The central part of a tooth containing nerves and blood vessels, vital for the tooth's nutrition and sensitivity.

Apical Foramen

Opening at the apex of the root of a tooth; gives passage to the nerve and blood vessels.