Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash flows -$325 $200 $200 $2001. 1.93 years2. 1.63 years3. 1.80 years4. 1.67 years5. 1.50 years

2. 1.63 years

Explanation;

Payback period is one way of checking to viability of a project by checking how long it will take for the project to pay back it's initial investment.

Payback Period = Year before Payback + (Amount remaining till payback/ Cash inflow in Year of Payback)

Cash inflow is $200 each so 2 years will bring in $400 which is more than the investment.

Year before payback is therefore 1 year.

Amount remaining till payback = 325 - 200 = 125

Cash inflow in Year of Payback being the second year is $200.

Payback Period = 1 + ( 125/200)

= 1 + 0.625

= 1.625

= 1.63 years

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.