What is the payback for a project that requires a $10,100 initial investment and returns $3,200 the next year and $2,100 per year after that?

a) The payback period is 3 years and 3 months.

b) The payback period is 3 years and 5 months

c) The payback period is 4 years and 3 months

d) The payback period is 4 years and 5 months

 

6) The Rusty Auto Parts Company has sales of $20,000 every month. Its retail prices are twice the wholesale cost (a 100% markup). It buys its parts one 1 month before it anticipates making a sale and it pays its suppliers one 1 month after making a purchase. What are accounts payable at the end of the month?

a) 10,000

b) 11,000

c) 8,000

d) 5,000