What Is the Payback Period for Tangshan Mining Company's New

question 109

Multiple Choice

What is the payback period for Tangshan Mining company's new project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3, and $1,800,000 in year 4?

• A) 4.33 years
• B) 3.33 years
• C) 2.33 years
• D) 1.33 years

---

Definitions:

Haploid Gametes

Haploid gametes are reproductive cells that contain a single set of chromosomes and unite during sexual reproduction to form a diploid zygote.

Gonads

Gonads are the primary reproductive organs, with ovaries present in females and testes in males, responsible for producing gametes and hormones.

Gametogenesis

The process by which gametes are produced in the reproductive organs, involving meiosis to produce haploid sex cells.

Haploid Cells

Cells that contain one complete set of chromosomes, typical of gametes (sperm and eggs) in sexually reproducing organisms.