Use the Information for the Question(s)below

question 17

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)2.0 years.
• D)2.2 years.

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Definitions:

Operating Segments

Parts of an organization that engage in business activities from which they may earn revenues and incur expenses, including revenues and expenses related to transactions with other components of the same organization.

Reportable

Pertaining to information or data that must be officially reported or disclosed, typically in compliance with legal or regulatory requirements.

Revenue Test

A criterion used to assess the validity of a company's revenue recognition practices, ensuring reported income arises from core business activities.

Operating Segments

Rephrasing: Operating segments are specific branches or units within a company for which separate financial data is collected and reviewed by the company’s decision-makers for the purpose of resource allocation and performance assessment.