If the Cash Flows of a Project Are Received Evenly

question 30

Multiple Choice

If the cash flows of a project are received evenly over the life of the project, the formula for the calculating the payback period is

• A) original investment/annual cash flow.
• B) original investment - annual cash flow.
• C) original investment + annual cash flow.
• D) original investment- annual cash flow.
• E) (original investment + annual cash flow)/annual cash flow.

Understand the advantages of taper pins over straight pins in mechanical assemblies.

Know the mechanisms used by semi-permanent pin fasteners for locking.

Recognize the various examples of pin fasteners and their applications.

Differentiate between semi-permanent and quick release pin fasteners.

---

Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received.

Potential Lawsuit

A legal challenge or claim that has not yet been filed but has the possibility to be brought forward because of existing disputes.

Contingent Liabilities

Possible obligations that may arise in the future due to past events, depending on the occurrence of certain uncertain events.

Unearned Revenues

Income received by a company for goods or services yet to be delivered or performed.