GuSont Inc Assume That Cash Inflows Occur Evenly Throughout the Year

question 38

Multiple Choice

GuSont Inc. was considering an investment in the following project: $\begin{array}{lrr}\text { Required initial investment } & \$ 990,000 \\\text { Net annual after-tax cash inflow } & \$ 165,000 \\\text { Annual depreciation expense }(\$ 990,000-\$ 165,000) / 15 \text { years } & \$ 55,000 \\\text { Estimated salvage value } & \$ 165,000 \\\text { Life of the project in years } & 15\end{array}$ Assume that cash inflows occur evenly throughout the year. The estimated payback period in years (rounded to one decimal place) for the proposed project is:

• A) 3.7 years.
• B) 4.6 years.
• C) 5.8 years.
• D) 6.0 years.
• E) 7.9 years.

---

Definitions:

Illicit Drugs

Substances whose production, sale, or use is prohibited or controlled by law due to their potential for abuse or addiction.

Alcohol Abuse

The excessive and harmful consumption of alcohol, leading to addiction, health problems, and impairments in social, occupational, or other important areas of functioning.

Self-Talk

The act of mentally speaking to oneself, which can influence emotions, behaviors, and overall cognitive processing.

Impulsive Behaviors

Actions undertaken without forethought or consideration of the consequences, often driven by immediate gratification or emotional impulse.