Question: . GBN Inc. is considering a project that has the following cash flow data. What is the project's payback period? Year 0 1 2 3

. GBN Inc. is considering a project that has the following cash flow data. What is the project's payback period?

Year

0

1

2

3

Cash flows

-$450

$200

$100

$200

Select one:

a. 2.5 years

b. 1.75 year

c. 2.75 years

d. 2 years

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Assume that you are the president of Nuclear Company. At December 31, 2017, the end of the first year of operations, the following financial data for the company are available: Required 1. Prepare a...

Q:

QUESTION 1 Malholtra Inc. is considering a project that has the following cash flow. What is the project's PayBack period? Year 0 1 2 3 4 Cash flows -$975 $300 $320 $340 $360 O 2.71 years O3.71 years...

Q:

Collorado Inc. is considering a project that has the following cash flow data. What is the project's payback? Year Cash flows 0 -P750 1 P300 2 P325 3 P350

Q:

QUESTION 9 0.25 points Save Answer Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year Cash flows $1,075 S500 S500 $500 OA. 2.15 years O...

Q:

LUCRU Rockmont Recreation Inc. is considering a project that has the following cash flow data. What is the project's IRR? Year: Cash flows: 0 -$1,000 1 $250 2 $230 3 $210 4 $190 3.72% 3.44% 2.25%...

Q:

Jim Angel holds a $200,000 portfolio consisting of the following stocks: Stock Investment Beta A $ 50,000 0.95 B 50,000 0.80 50,000 1.00 D 50,000 1.20 Total $200,000 What is the portfolio's beta?...

Q:

Wells Inc. is considering a project that has the following cash flow data. What is the projects payback? Year: 0 1 2 3 Cash flows: $970 $450 $450 $450 A. 2.16 yrs B. 2.00 yrs C. 3.00 yrs D. 1.80 yrs...

Q:

Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$450 $200 $200 $200

Q:

Please explain the calculation Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 2 3 Cash flows -$450 $200 $200 $200

Q:

Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback? Year: 0 1 2 3 Cash Flows: - $ 4 5 0 $ 2 0 0 $ 2 0 0 $ 2 0 0 Which option is correct? a . 2...

Q:

Kroger Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$450 $200 $200 $200 2.39 years 1.94 years 1.71 years 2.25 years...

Q:

Q-Your group was given the task of supervising the EVENT of IMS spring Food Festival with fresh Entrepreneurs .Discuss how you as the leader of the group . a-Ensured an effective communication both...

Q:

Joshua Pty Ltd runs a furniture retailing business. During the tax year 19-20, Joshua provided customers with various loan arrangements to finance the purchase of furniture. Total expenses relating...

Q:

shareholders are granted a preemptive right they will:Multiple Choice 8 0 1 : 0 4 : 1 4 eBookSavedMCGrawHilleschave priority in the purchase of any newly issued shares.be entitled to two votes per...

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...