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:

Materially Different Meanings

Phrases or terms used in legal or contractual contexts that significantly alter the interpretation or understanding from their common usage.

Voidable Contract

A valid agreement that one or more parties can legally cancel if they choose, due to reasons such as fraud or lack of capacity to consent.

Material Misrepresentation

False or misleading statements that significantly affect another party's decision in a transaction.

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a standard to assess behavior.