Calculate (0

question 52

Multiple Choice

Calculate (0.82 + 0.042) x (4.4 x 10³) , keeping only significant figures.

• A)3 800
• B)3 784
• C)3 793
• D)3 520

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Definitions:

Payback

The period of time required to recoup the funds expended in an investment, or how long it takes for an investment to reach a breakeven point.

Annual Cash Flows

The total cash that is generated and used by a business in one fiscal year.

Required Rate

This is often referred to as the minimum acceptable return on an investment, set by investors or managers.

Payback

The amount of time it takes for an investment to generate an amount of income or cash flow to recover its initial cost.