Poder IncIs Considering a Project That Has the Following Cash Flow

question 99

Multiple Choice

Poder Inc.is considering a project that has the following cash flow data.What is the project's payback?

• A) 1.91 years
• B) 2.12 years
• C) 2.36 years
• D) 2.59 years
• E) 2.85 years

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Definitions:

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct material and labor costs.

Liabilities

Amounts owed to creditors in the form of debts and other obligations.