Consider an Investment with an Initial Cost of $20,000 and Is

question 100

Multiple Choice

Consider an investment with an initial cost of $20,000 and is that expected to last for 5 years. The expected cash flows in years 1 and 2 are $5,000,in years 3 and 4 are $5,500 and in year 5 is $1,000. The total cash inflow is expected to be $22,000 or an average of $4,400 per year. Compute the payback period in years.

• A) 3.18 years
• B) 3.82 years
• C) 4.00 years
• D) 4.55 years
• E) None of these.

---

Definitions:

Jejunum

The part of the small intestine between the duodenum and ileum.

Ileum

The final and longest segment of the small intestine, playing a key role in absorbing nutrients and vitamins.

Large Intestine

The final section of the digestive system, responsible for water absorption and feces formation.

Glucose

A fundamental sugar crucial for energy provision in living entities and a constituent of various carbohydrates.