Consider the Following Three-Year Project

question 37

Multiple Choice

Consider the following three-year project.The initial after-tax outlay or after-tax cost is $1,500,000.The future after-tax cash inflows for years 1,2,3 and 4 are: $800,000,$800,000,$300,000 and $100,000,respectively.What is the payback period without discounting cash flows?

• A)1.875 years
• B)2.0 years
• C)3.5 years
• D)4.125 years

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Definitions:

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Organic molecules that contain carbon atoms bonded together or with other elements, forming the basis of organic chemistry.

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