You Are Considering a Project with an Initial Cost of $4,300.What

question 61

Multiple Choice

You are considering a project with an initial cost of $4,300.What is the payback period for this project if the cash inflows are $550,$970,$2,600,and $500 a year over the next four years?

• A)2.04 years
• B)2.36 years
• C)2.89 years
• D)3.04 years
• E)3.36 years

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Definitions:

Negotiated

Negotiated refers to having discussed and agreed upon terms or conditions through a process of bargaining or dialogue between parties.

Holder

The person in possession of a negotiable instrument.

Cheques

Written orders directing a bank to pay a specified sum of money from the writer's account to the person or entity named on the cheque.

Bills Of Exchange

Documents that signify a written order directing one party to pay a determined sum to another by a specific date.