Worthington Inc $\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & - \$ 500 & \$ 150 & 200 & \$ 300\end{array}$

question 8

Multiple Choice

Worthington Inc. is considering a project that has the following cash flow data. What is the project's payback?
$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & - \$ 500 & \$ 150 & 200 & \$ 300\end{array}$

• A) 2.03 years
• B) 2.25 years
• C) 2.50 years
• D) 2.75 years
• E) 3.03 years

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Definitions:

Flow Time

The total time a product or a piece of work requires to move through a production process, from start to finish.

Work-In-Process

Inventory that includes materials that have been released for production but are not yet complete, representing a critical stage in manufacturing and costing processes.

Lateness

The measure of delay in a project, task, or delivery, indicating how much time has passed beyond the expected completion date.

Desktop Publishing

The process of using computer software to design and create publication documents, combining text and graphics.