DYI Construction Co

question 72

Multiple Choice

DYI Construction Co.is considering a new inventory system that will cost $750,000.The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one,$325,000 in year two,$150,000 in year three,and $180,000 in year four.DYI's required rate of return is 8%.What is the payback period of this project?

• A) 4.00 years
• B) 3.09 years
• C) 2.91 years
• D) 2.50 years

---

Definitions:

Persuasive Messages

Communications designed to convince or influence the audience to adopt a specific viewpoint or take a particular action.

Substantial Action

Significant or meaningful steps taken to achieve a goal or implement a plan, often requiring considerable effort or resources.

Analyze The Situation

The process of examining a set of circumstances to understand its components, dynamics, and implications.

Faulty Logic

Involves reasoning that is flawed or contains mistakes, leading to incorrect conclusions.