McGlothin Inc

question 94

Multiple Choice

McGlothin Inc.is considering a project that has the following cash flow data.What is the project's payback?

• A)1.86 years
• B)2.07 years
• C)2.30 years
• D)2.53 years
• E)2.78 years

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Definitions:

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Partner

An individual who shares ownership of a business or an endeavor with one or more persons, often sharing in profits and responsibilities.

Profitability

The degree to which a business or activity yields financial profit or gain, often measured as a ratio of net income to revenue.

Guarantee

A formal promise or assurance, often provided by a third party, that certain conditions or obligations will be met.