Worthington Inc

question 55

Multiple Choice

Worthington 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
−$500
$150
$200
$300

• A) 2.03 years
• B) 2.25 years
• C) 2.50 years
• D) 2.75 years
• E) 3.03 years

---

Definitions:

Production Costs

The total expenses incurred in the manufacture of a product or the delivery of a service, including raw materials, labor, and overheads.

Relationship Marketing

A strategy designed to foster customer loyalty, interaction, and long-term engagement.

Customers

Individuals or organizations that purchase goods or services from a business.

Indirect Method

An accounting technique used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions.