Carol Harrison Is Considering an Investment in a Retail Shopping

question 117

Multiple Choice

Carol Harrison is considering an investment in a retail shopping mall. The initial investment is $400,000. She expects to receive cash income of $80,000 a year. What is the payback period?

• A) 4 year
• B) 3.5 years
• C) 5 years
• D) 2.5 years
• E) 6 years

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Definitions:

Starter Solenoid

An electromagnetic switch that engages the starter motor of an engine, turning it over to initiate combustion.

Voltage Drop

The reduction in electrical voltage as it passes through a component or conductor, due to resistance or impedance in the circuit.

Low Current Draw

The condition of an electrical device consuming a relatively small amount of electrical current.

Viscosity

The sheer resistance of a liquid often used to mean oil thickness or resistance to flow.