A Project Has an Initial Cost of $6,500

question 74

Multiple Choice

A project has an initial cost of $6,500.The cash inflows are $900,$2,200,$3,600,and $4,100 over the next four years,respectively.What is the payback period?

• A)1.73 years
• B)2.51 years
• C)2.94 years
• D)3.51 years
• E)3.94 years

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Definitions:

Data Accumulation

The process of collecting, organizing, and storing data for analysis and decision-making purposes.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments not considered cash equivalents.

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted into cash within a year.

Acquisition

The process of acquiring control of another company by purchasing its shares or assets.