Seattle Inc. identified an investment opportunity that requires an initial cash outflow of $150,000. Seattle's required rate of return is 10 percent. The investment will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. Assume the cash flows occur evenly during the year. What is the traditional payback period for this investment?
A. 5.23 years
B. 4.86 years
C. 4.51 years
D. 6.12 years
E. 4.35 years
Answer: B
You might also like to view...
In a decentralized organization, more of the decisions are made by the
A. department heads and regional managers. B. lower levels of the organization. C. board of directors and stockholders. D. chief executive officer and president. E. upper levels of the organization.
The net income of a company for the year just ended is $230,000 . Income tax is $80,500 and interest expense is $20,000 . The number of times interest was earned would be
a. 0.05. b. 10.5. c. 11.5. d. 16.5.
Kim’s goal is to save more money by the end of the current year. Which of the following is a must criteria for effective objectives that is not met in this statement?
a. single result b. specific c. realistic d. target date
Which type of control considers results with respect to the stated marketing plan or program?
A) observational B) operational C) managerial D) strategic E) implementation