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O b. $482.22 c $62.81 d-$116.44 Oe. None of the above QUESTION 28 3 points Save

ID: 2781496 • Letter: O

Question

O b. $482.22 c $62.81 d-$116.44 Oe. None of the above QUESTION 28 3 points Save Answer Consider an investment with an initial cost of $15,000 and is expected to last for 5 years. The expected cash flow in years 1 and 2 are $5,000, in years 3 and 4 are $5500 and in year 5 is $1,000. Compute the payback period in years a. 2.91 years b. 3.37 years Oc. 3.81 years o d.4.22 years e 453 QUESTION 29 3 points Save Answer You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $500 you spent fixing the transnaission is a(n) cost

Explanation / Answer

28.

first two years will get=10000 of 15000 investment, so only 5000 will be remaining to paid back after two years

payback period=2 years+(15000-5000-5000)/5500=2 years+0.91 years=2.91 years

the above is the answer