Worthington 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 −$500 $150 $200 $300 a. 2.75 years b. 2.25 years c. 3.03 years d. 2.03 years e. 2.50 years

Worthington 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 −$500 $150 $200 $300 a. 2.75 years b. 2.25 years c. 3.03 years d. 2.03 years e. 2.50 years

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA

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Question

Worthington 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	−$500	$150	$200	$300

a. 2.75 years

b. 2.25 years

c. 3.03 years

d. 2.03 years

e. 2.50 years

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