The scatter plot drawn at the left depicts the percentage of maryland residents born in maryland between the years 1900 and 2000. which of the following equations best describes the relationship shown?

a.y=−0.3x+78.7
b.y=3.3x−78.7
c.y=−0.3x−78.7
d.y=−3.3x+78.7

Answer and Explanation:

The computation of the payback period for both the locations is shown below;

For location 1

= $402,000 ÷ $67,000

= 6 years

And, for location 2

Year       Cash flows    Cumulative cash flows

1         $145,000              $145,000

2        $105,000              $250,000

3          $68,000             $318,000

4          $52,000              $370,000

5          $32,000             $402,000

So, the payback period for location 2 is 5 years