A Project Has an Initial Cost of $2,300

question 114

Multiple Choice

A project has an initial cost of $2,300.The cash inflows are $300,$500,$900,and $700 over the next four years,respectively.What is the payback period?

• A)2.71 years
• B)2.98 years
• C)3.11 years
• D)3.86 years
• E)Never

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Definitions:

Net Operating Income

A company's income after all operating expenses, excluding the effects of interest and taxes, have been deducted from total revenues.

Planning Budget

A budget prepared before the period begins, based on projected levels of activity; acts as a guideline for income, expenses, and financial goals.

Spending Variance

A measure indicating the disparity between what was anticipated to be spent and what was actually expended in financial terms.

Employee Salaries

The monetary compensation paid to employees for their labor, typically on a monthly or yearly basis.