Garvin Enterprises Is Considering a Project That Has the Following

question 66

Multiple Choice

Garvin Enterprises is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $\begin{array}{lcccc}\text { WACC: } & 10.00 \% \\\text { Year: } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows: } & -\$ 1,000 & \$ 500 & \$ 500 & \$ 500\end{array}$

• A)2.12 years
• B)2.35 years
• C)2.59 years
• D)2.85 years

---

Definitions:

ATM

An Automated Teller Machine that allows bank customers to perform financial transactions, such as withdrawals and deposits, electronically without a human teller.

Payor Bank

The bank that is responsible for paying the check or draft as specified by the person making the payment.

Midnight Deadline

The end point, usually referred to the close of business, or 11:59 PM, by which a particular task or obligation must be completed.

Depositor

refers to an individual or entity that places money into a bank account with the expectation of withdrawing it later or using the banking services.