A Project Has an Initial Cost of $18,400 and Produces

question 52

Multiple Choice

A project has an initial cost of $18,400 and produces cash inflows of $7,200,$8,900,and $7,500 over three years,respectively.What is the discounted payback period if the required rate of return is 16 percent?

• A)2.31 years
• B)2.45 years
• C)2.55 years
• D)2.62 years
• E)never

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Definitions:

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivors benefits.

Hospital Insurance

Coverage that pays for hospital expenses incurred by the insured due to illness or injury.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured while in a hospital.