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

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Definitions:

Mumford's Skills Model

A model of leadership that suggests key leader capabilities include individual attributes, competencies, leadership outcomes, and career experiences.

Technical Skill

The ability to apply specialized knowledge or expertise in a particular field or task.

Conceptual Skill

Conceptual Skill involves the ability to understand complex situations and identify key patterns, allowing for the development of strategic visions and solutions.

Problem-Solving Skills

Abilities that enable individuals to identify, define, and effectively resolve issues or obstacles.