Use the Information for the Question(s) Below

question 67

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company expects cash inflows from this project as detailed below:
The appropriate discount rate for this project is 16%.
-The payback period for this project is closest to:

• A) 2.1 years
• B) 3.0 years
• C) 2 years
• D) 2.2 years

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Definitions:

Tar

A dark, thick, and sticky liquid derived from coal or wood, used for waterproofing, sealing, and paving, or as a component in certain manufacturing processes.

Single-Parent Families

Single-Parent Families are families with children that are headed by a single parent as a result of divorce, death, or other circumstances.

Divorce

The legal dissolution of a marriage by a court or other competent body.

High Rate

An elevated level or number in a given context, such as interest rates, inflation, or speed.