Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Annual NetCash FlowsYear 1$40,000 Year 2$40,000 Year 3$35,000 Year 4$35,000 Year 5$30,000 Compute the payback period for this investment.
A. 3.00 years.
B. 2.85 years.
C. 2.57 years.
D. 3.62 years.
E. 2.50 years.
Answer: C
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Which of the following differentiates a centralized organization from a decentralized organization?
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José works for a company where he is given the freedom to decide how best to carry out the tasks assigned to him. It can be said that José's job has high
A. skill variety. B. autonomy. C. task significance. D. feedback. E. task identity.
Entrepreneurs should think carefully about their community commitments because "doing good" may add to a small company's
A. bottom line. B. financial burden. C. payroll. D. local profile.