Multiple Choice
What is the payback period for a project with an initial investment of $180,000 that provides an annual cash inflow of $40,000 for the first three years and $25,000 per year for years four and five,and $50,000 per year for years six through eight?
A) 5.80 years
B) 5.20 years
C) 5.40 years
D) 5.59 years
Correct Answer:

Verified
Correct Answer:
Verified
Q148: The profitability index can be helpful when
Q149: The Meacham Tire Company is considering two
Q150: Your firm is considering an investment that
Q151: If a project's IRR is equal to
Q152: The Bolster Company is considering two mutually
Q153: Southeast Compositions,Inc.is considering a project with the
Q155: An infinite-life replacement chain allows projects of
Q156: If a project is acceptable using the
Q157: If the NPV (Net Present Value)of a
Q158: When several sign reversals in the cash