Kenny Company Is Considering the Possibility of Investing $1,500,000 in a Special

question 81

Multiple Choice

Kenny Company is considering the possibility of investing $1,500,000 in a special project.This venture will return $375,000 per year for 12 years in after tax cash flows.Depreciation on the project will be $187,500 per year using straight-line depreciation.The payback period for the project is:

• A)6 years.
• B)12 years.
• C)4 years.
• D)2 years.

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Definitions:

Ileum

The ileum is the final and longest segment of the small intestine, where most of the nutrients from digested food are absorbed.

Jejunum

The middle section of the small intestine in mammals, between the duodenum and ileum, where the absorption of nutrients and minerals occurs.

Duodenum

The first section of the small intestine, immediately following the stomach, where significant chemical digestion occurs.

Fundus

The upper part of a hollow organ, like the stomach or uterus, which is often opposite from the opening.