Norton Corporation Is Considering a 6 Year Project Having an Initial

question 87

Multiple Choice

Norton Corporation is considering a 6 year project having an initial investment of $150,000.The project will provide cash inflows of $25,000 for the first 3 years and $60,000 during the last 3 years.Given this information, calculate the project's payback.

• A)3.75 years
• B)4.00 years
• C)4.25 years
• D)4.50 years

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Definitions:

Walking Purchase

A 1737 agreement between the Penn family, the proprietors of Pennsylvania, and the Lenape Indians, which fraudulently expanded Pennsylvania territory by utilizing a forged document.

Lenni Lenape Indians

A Native American tribe originally inhabiting parts of the Northeastern United States, also known as the Delaware Indians.

Inconsequential

means not important or significant; having little or no importance.

Deceptive

Pertaining to or involving deceit; misleading or giving a false impression.