Shields Company Has Gathered the Following Data on a Proposed

question 68

Multiple Choice

Shields Company has gathered the following data on a proposed investment project:
$\begin{array}{|l|r|}\hline \text { Investment Required in Equipment } & \$ 400,000 \\\hline \text { Annual Cash Inflows } & \$ 80,000 \\\hline \text { Salvage Value } & \$-0- \\\hline \text { Life of the Investment } & 10 \text { years } \\\hline \text { Discount Rate } & 10 \% \\\hline\end{array}$
(Ignore income taxes in this problem.)
-The payback period for the investment is closest to which of the following?

• A) 0.2 years.
• B) 1.0 years.
• C) 3.0 years.
• D) 5.0 years.

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Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature, often occurring in the workplace or academic settings.

Raise

An increase, typically referring to salary, wages, or funds.

Corporate Philanthropy

The effort or inclination of companies to promote the welfare of others, typically through charitable donations of funds or time.

Non-Profit Organizations

Entities that operate for the welfare of the public or a specific group of people, reinvesting all profits into their mission rather than distributing them to owners or shareholders.