Use the Table for the Question(s)below

question 5

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The payback period for project A is closest to:

• A)2.0 years.
• B)2.4 years.
• C)2.5 years.
• D)2.2 years.

---

Definitions:

Throughput

The rate at which a system or process produces goods or handles material, often measured within a specific time frame.

Operating Expenses

Costs associated with the day-to-day functioning of a business that are not directly tied to production, such as salaries and rent.

Production Processes

Refers to the sequence of activities or operations involved in transforming raw materials into finished goods.

Value Analysis

A systematic assessment to identify and eliminate unnecessary costs in product design without sacrificing functionality or quality.