Should the company accept the project? (Select the best answer below.) A. The company should accept the project since the after-tax cash flows occur for more years than the maximum acceptable payback. B. The company should accept the project since the payback period is less than the maximum. C. The company should reject the project since the payback period is less than the maximum. D. The company should reject the project since the payback period is less than the number of years of the after-tax cash flows. E. The company should reject the project since the after-tax cash flows occur for more years than the maximum acceptable payback.

a) 5.53 years.

b) B. The company should accept the project since the payback period is less than the maximum.

Explanation:

a) The Payback period of a project is simply the amount of time in which a project is scheduled to pay back the original Investment. It is calculated by dividing the initial investment by the annual cash inflows.

The above project will cost $64,000 and returns after-tax cash inflows of $11,573 for 10 years.

Calculating the Payback Period is,

= 64,000/11,573

= 5.53 years.

b) It is stated that the firm has a maximum acceptable payback period of 8 years. With a Payback period of 5.53 years, the project will pay back a couple of years before the maximum required length and therefore should be chosen all else being equal.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.