Worthington inc. is considering a project that has the following cash flow data. what is the project's payback? year 0 1 2 3cash flows −$500 $150 $200 $300a. 2.03 yearsb. 2.25 yearsc. 2.50 yearsd. 2.75 yearse. 3.03 years

c. 2.50 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $500

In year 1 = $150

In year 2 = $200

In year 3 = $300

If we sum the first 2 year cash inflows than it would be $350

Now we deduct the $350 from the $500 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $300

So, the payback period equal to

= 2 years + ($150 ÷ $300)

= 2.50 years

In 2.50 yeas, the invested amount is recovered.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

fractionally backed paper money

fiat money

paper money

metallic money