Jamaica Corp

question 19

Multiple Choice

Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16 percent. What is the payback period for this project? (Round your answer to one decimal place.)

• A) 2.7 years
• B) 2.9 years
• C) 3.1 years
• D) 3.4 years

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Definitions:

Cidal

Used as a suffix in pharmacology and microbiology to indicate substances or actions that kill (e.g., bactericidal, which means capable of killing bacteria).

-ase

A suffix used in biochemistry to denote enzymes, which are proteins that catalyze biochemical reactions.

Crine

Pertaining to secretion, used in terms to describe glands or substances involved in the release of chemical substances in the body.

Gen

A prefix meaning "to become," often used in the formation of words related to genes, genetics, or generating something.