Use the Table for the Question(s)below

question 6

Multiple Choice

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

• A)3.2 years.
• B)2.9 years.
• C)3.1 years.
• D)2.6 years.

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Definitions:

Selling and Administrative Expenses

the combined total of all costs associated with selling a company’s products and managing the company, excluding direct costs of producing goods or services.

Period Costs

Expenses that are not directly tied to product production and are recorded as expenses in the period in which they are incurred, such as selling and administrative expenses.

Value Chain

The full range of activities that businesses go through to bring a product or service from its conception to its end use by consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.