The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan.

-For the project, how long will it take to recover the initial investments?
A)Less than one year
B)Between one year and two years
C)Between two years and three years
D)Between three years and four years
E)More than four years

Question

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan.
 
-For the project, how long will it take to recover the initial investments?
A)Less than one year 
B)Between one year and two years 
C)Between two years and three years 
D)Between three years and four years 
E)More than four years

Quizplus · Accepted Answer

The correct choice is C, between two years and three years, as it is the only option provided that fits within the typical range for recovering initial investments in many projects, assuming no specific project details are given.

The Product Design Costs Are $75,000