An investment project provides cash inflows of $740 per year for 9 years.   What is the project payback period if the initial cost is $1,480? A. 2.00 years B. 2.02 years C. 1.90 years D. 1.94 years E. 2.04 years    What is the project payback period if the initial cost is $4,958? A. 6.70 years B. 6.77 years C. 6.37 years D. 6.83 years E. 6.50 years    What is the project payback period if the initial cost is $7,400? A. 3.01 years B. Never C. 4.95 years D. 5.25 years E. 1.35 years

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
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An investment project provides cash inflows of $740 per year for 9 years.

 

What is the project payback period if the initial cost is $1,480?

A. 2.00 years

B. 2.02 years

C. 1.90 years

D. 1.94 years

E. 2.04 years

  

What is the project payback period if the initial cost is $4,958?

A. 6.70 years

B. 6.77 years

C. 6.37 years

D. 6.83 years

E. 6.50 years

  

What is the project payback period if the initial cost is $7,400?

A. 3.01 years

B. Never

C. 4.95 years

D. 5.25 years

E. 1.35 years

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