McGlothin Inc

question 36

Multiple Choice

McGlothin Inc.is considering a project that has the following cash flow data.What is the project's payback?
Year
0
1
2
3
Cash flows
−$1,150
$500
$500
$500

• 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:

Payoffs

The outcomes or returns from an action or investment, often used in the context of games and financial investments.

Dominant Strategy

A strategy in game theory that always results in the best payoff for a player, regardless of what the opposing players do.

Sponsor

An individual or organization that provides support, usually financial, for an event, activity, person, or organization.

Marathon

A long-distance running race with an official distance of 42.195 kilometers or about 26.2 miles.