Consider the Following Tem-Year Project

question 94

Multiple Choice

Consider the following tem-year project. The initial after-tax outlay or after-tax cost is $1,000,000. The future after-tax cash inflows each year for years 1 through 10 are $200,000 per year. What is the payback period without discounting cash flows?

• A) 10 years
• B) 5 years
• C) 2.5 years
• D) 0.5 years

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Definitions:

Adjusted

Modified or changed to reflect more accurate or specific conditions or values.

Income Statement Columns

The part of the income statement that provides a detailed breakdown of revenue, expenses, and profit over a specific period, often presented in a multi-column format.

Balance Sheet Columns

Balance sheet columns refer to the structured format in financial reporting that outlines a company's assets, liabilities, and shareholders' equity at a specific point in time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.