A Company Is Evaluating an Investment Proposal Using the Payback

question 15

Multiple Choice

A company is evaluating an investment proposal using the payback period method.Cash inflows are expected to be $80 000 in year 1,$120 000 in year 2,$150 000 in year 3,and $180 000 in year 4.The initial investment required is $380 000.Assuming even cash inflows throughout each year,the payback period is:

• A) 3 years.
• B) 3.17 years.
• C) 3.34 years.
• D) 3.47 years.

---

Definitions:

Report Design View

A mode within software applications where users can arrange and specify the layout and appearance of a report before it is generated.

Repeat Section

A feature in some software that allows a section of content to be duplicated or looped, often used for headers, footers, or specific data structures.

Print Section

A feature in document editing software that allows the user to select and print a specific part of a document.

Every Page

A term generally used to indicate that a particular header, footer, or element should appear on every page of a document or presentation.