A Company Is Considering a 5-Year Project with an Initial

question 17

Multiple Choice

A company is considering a 5-year project with an initial investment of $90,000.Cash inflows will be $30,000 for the first two years and $25,000 for the next 3 years.If the company's required rate of return is 12%, determine its discounted payback.

• A)3.40 years
• B)3.60 years
• C)3.80 years
• D)4.00 years

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Definitions:

Trailer

Any of a number of different types of nonpowered, load-carrying vehicles towed by another vehicle.

Hold-Off Circuit

A type of circuit used to delay or prevent the activation of part of a system until certain conditions are met.

System Air Pressure

The pressure of the air in a pneumatic system, which is critical for the operation of air-powered tools or vehicles.

Parking Brakes

A mechanism in vehicles designed to keep the vehicle stationary by mechanically locking the wheels, also known as a handbrake or emergency brake.