An Investment of $42,000 Is Expected to Generate the Following

question 131

Multiple Choice

An investment of $42,000 is expected to generate the following annual cash flows: Assume straight-line depreciation is used.Ignore income taxes.What is the payback period?

• A)3 years
• B)3.17 years
• C)3.83 years
• D)4 years

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Definitions:

Corporate Strategy

The overarching plan and direction of a corporation that guides long-term decisions, including expansion, diversification, acquisition, and the allocation of resources.

Functional Strategies

Specific tactics and plans developed within each of a company's functional areas, like marketing or finance, to support the overall business strategy.

Mission Statement

A concise statement that defines the core purpose, direction, and values of an organization, guiding its strategic decisions and actions.

Organization's Purpose

Defines the overarching reason for an organization's existence, encompassing its mission, vision, and objectives.