Baxter's Market Is Considering Opening a New Location with an Initial

question 8

Multiple Choice

Baxter's Market is considering opening a new location with an initial cost of $139,200.This location is expected to generate cash flows of $22,400,$61,500,$37,800,and $21,000 in Years 1 to 4,respectively.What is the payback period?

• A)3)92 years
• B)3)83 years
• C)2)46 years
• D)2)57 years
• E)3)01 years

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Definitions:

Environmental Scan

An analysis method that examines the internal and external environments of an organization to identify opportunities and threats.

External Environment

The external factors, including economic, legal, political, social, technological, and competitive elements, that influence an organization's operations.

Environmental Factor

An external element that can influence the performance and outcomes of an organization, including economic, social, technological, political, and natural conditions.

Legislation

A body of laws and regulations enacted by a government or legislative authority to regulate, authorize, sanction, grant, declare, or restrict.