Young Corporation is considering purchasing equipment that costs $80,000 and is expected to provide the following cash inflows over its five-year useful life:YearCash inflow 1$18,000 2 22,000 3 24,000 4 16,000 5 9,000 What is the payback period of this investment project (rounded to the nearest year)?
A. 6 years
B. 2 years
C. 4 years
D. 3 years
Answer: C
You might also like to view...
A negotiated transfer price is one that is bargained for between the managers of the buying and selling divisions of a company
Indicate whether the statement is true or false
Under the employment-at-will doctrine, either party may terminate the employment relationship at any time and for any reason.?
Indicate whether the statement is true or false
Because common stockholders have a right to the cash flows remaining after all claims on the corporation have been satisfied, they are known as:
A) Preferred shareholders. B) Fiduciary claimants. C) Limited liability participants. D) Residual claimants. E) Principal shareholders.
Edie needs $1,500 to buy textbooks and other school supplies. Frank agrees to loan Edie $1,500, accepting as collateral Edie's car. They put their agreement in writing and sign it. Edie keeps possession of the car. Does Frank have an enforceable security interest? How can Frank let other creditors know of his interest in the car?
What will be an ideal response?