An Investment Project Requires a Net Investment of $100,000

question 89

Multiple Choice

An investment project requires a net investment of $100,000.The project is expected to generate annual net cash inflows of $28,000 for the next 5 years.The firm's cost of capital is 12 percent.Determine the payback period for the project.

• A)0.28 years
• B)1.4 years
• C)3.57 years
• D)17.86 years

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Definitions:

Carbon

Carbon is a chemical element with symbol C and atomic number 6, known for its role in organic chemistry and its ability to form a vast number of compounds.

Molecular Formula

A notation that indicates the type and number of atoms in a molecule, but not the arrangement of the atoms.

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Organic Compound

A compound primarily made of carbon atoms bonded with other elements like hydrogen, oxygen, and nitrogen.