ABC Company Is Adding a New Product Line That Will

question 91

Multiple Choice

ABC Company is adding a new product line that will require an investment of $1,500,000. The product line is estimated to generate cash inflows of $300,000 the first year, $250,000 the second year, and $200,000 each year thereafter for ten more years. What is the payback period?

• A) 2.73 years
• B) 6.00 years
• C) 6.75 years
• D) 7.25 years

---

Definitions:

SUDs

Substance Use Disorders, a condition characterized by the excessive use of substances, including alcohol and drugs, leading to significant impairment or distress.

TEDS-A

Treatment Episode Data Set - Admissions, a national data system that collects information on the primary substances of abuse and characteristics of individuals admitted to substance abuse treatment.

SUD Treatment Admissions

The process of entering into a program or facility for the treatment of substance use disorders.

Ambulatory IOP

Ambulatory Intensive Outpatient Program, a treatment option for substance use disorders that allows patients to live at home while receiving rigorous, scheduled therapy.