Consider the Following Four-Year Project

question 20

Multiple Choice

Consider the following four-year project.The initial after-tax outlay or after-tax cost is $1,000,000.The future after-tax cash inflows for years 1,2,3 and 4 are: $400,000,$300,000,$200,000 and $200,000,respectively.What is the payback period without discounting cash flows?

• A)2.5 years
• B)3.0 years
• C)3.5 years
• D)4.0 years

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Definitions:

Rhabdomyosarcoma Tumor

A malignant tumor associated with muscle tissue, most commonly occurring in children and presenting challenges for treatment.

Ecchymosis

The medical term for a subcutaneous purplish patch larger than a petechia, commonly called a bruise, caused by bleeding under the skin.

Abdominal Mass

A lump felt in the abdomen that may be caused by a variety of medical conditions, ranging from benign cysts to cancers.

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Specialized muscle fibers in the heart that are responsible for the heart's contraction and pumping action.