Beduin Services Is Considering an Investment of $25,000

question 15

Multiple Choice

Beduin Services is considering an investment of $25,000. Data related to the investment are as follows: Cost of capital is 14 percent.
What is the payback period in years approximated to two decimal points, assuming no taxes are paid?

• A) 2.12
• B) 4.00
• C) 3.00
• D) 2.50

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed goods into a number of completed units, facilitating the calculation of unit costs.