Rodriquez's Hot Rods Is Considering a New Project with an Initial

question 4

Multiple Choice

Rodriquez's Hot Rods is considering a new project with an initial cost of $54,780 and a discount rate of 14 percent.The project is expected to have cash inflows of $27,000 a year for 3 years.What is the discounted payback period?

• A)2)17 years
• B)2)11 years
• C)2)62 years
• D)2)57 years
• E)Never

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Definitions:

Inventory

Goods a business owns for the completion of future sales. Also, the act of counting the goods held in stock.

Synthetic Manufacturing

The process of producing materials, chemicals, or products using chemical synthesis rather than natural sourcing.

Firm's Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Inventory

The total amount of goods and materials held by a business intended for sale or production.