The Following Details Are Provided by a Manufacturing Company Calculate the Payback Period for the Investment

question 140

Multiple Choice

The following details are provided by a manufacturing company: $$\begin{array} { | l | r | } \hline & \text { Product line } \\\hline \text { Investment } & \$ 1,100,000 \\\hline \text { Useful life } & 12 \text { years } \\\hline \text { Estimated annual net cash inflows for first year } & \$ 400,000 \\\hline \text { Estimated annual net cash inflows for second year } & \$ 390,000 \\\hline \text { Estimated annual net cash inflows for next ten years } & \$ 380,000 \\\hline \text { Residual value } & \$ 70,000 \\\hline \text { Depreciation method } & \text { Straight-line } \\\hline \text { Required rate of return } & 14 \% \\\hline\end{array}$$ Calculate the payback period for the investment. (Round your answer to two decimal places.)

• A) 2.75 years
• B) 2.82 years
• C) 2.55 years
• D) 2.77 years

Identify critical attributes of compensation and the timing for reviewing position descriptions.

Understand the concept of learned helplessness and its implications on behavior and psychological well-being.

Recognize the effects of exposure to violence and aggressive models on aggressive behavior.

Identify the relationship between locus of control and various aspects of life such as achievement, health, and psychological states.

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Definitions:

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior quality, innovation, cost structure, or customer service.

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Strategic Control

An attempt to make sure that strategies are well implemented and that poor strategies are scrapped or modified.

Top Management

The highest tier of executives and decision-makers in an organization, responsible for setting strategic directions and policies.