The Following Details Are Provided by a Manufacturing Company

question 38

Multiple Choice

The following details are provided by a manufacturing company:

Calculate the payback period for the investment.(Round your answer to two decimal places. )

• A)2.98 years
• B)2.82 years
• C)1.98 years
• D)2.20 years

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Definitions:

Financial Data

Information related to the financial status of an individual or organization, including income, expenses, assets, and liabilities.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Financial Data

Numerical information related to monetary transactions, financial status, and performance of a company, used for analysis and decision-making.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.