The Blue Goose Is Considering a Project with an Initial

question 72

Multiple Choice

The Blue Goose is considering a project with an initial cost of $42,700. The project will produce cash inflows of $8,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?

• A) 2.87 years
• B) 3.23 years
• C) 3.41 years
• D) 3.79 years
• E) 4.23 years

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Definitions:

Off-site Employees

Workers who perform their job functions outside of the traditional office setting, such as remote or telecommute positions.

Fixed Position Layout

An arrangement where the product being worked on remains stationary, and workers, materials, and equipment move around it.

Takt Times

The pace at which products must be completed to meet customer demand, calculated as available production time divided by the quantity of product needed.

High-draw Items

Products or goods that consistently generate high demand from consumers or businesses.