What is the payback period

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A stock returned 23 percent, 18 percent, -4 percent and -1 percent annually for the past four years. Based on this information, what is the 99.74 percent probability range for any one given year? A. -4.49 percent to 22.49 percent B. -22.36 percent to 39.36 percent C. -31.47 percent to 49.47 percent D. -17.98 percent to 35.98 percent

Assume an asset cost $44,500 and has a current book value of $25,700. The asset is sold today for $21,900 cash. The firm's tax rate is 21 percent. As a result of this sale, the firm's net cash flow: A. will increase by exactly $21,900 B. will decrease by the difference between the $25,700 and the $21,900. C. will increase by more than $21,900. D. will increase by less than $21,900.

Baxter's Market is considering opening a new location with an initial cost of $548,700. This location is expected to generate cash flows of $242,400, $201,500, $187,800, and $241,000 in Years 1 to 4. What is the payback period? A. 3.04 years B. 2.18 years C. 2.56 years D. 2.93 years.

Reference no: EM132000868

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