If the Cash Flows of a Project Are Received Evenly

question 126

Multiple Choice

If the cash flows of a project are received evenly over the life of the project,the formula for the calculating the payback period is

• A)original investment/annual cash flow.
• B)original investment ´ annual cash flow.
• C)original investment + annual cash flow.
• D)original investment - annual cash flow.
• E)(original investment + annual cash flow)/annual cash flow.

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Definitions:

Top-Down Processing

A cognitive process that starts with the brain applying what it knows and what it expects to perceive and interpret sensory information.

Bottom-Up Processing

A cognitive approach in which perception starts with an incoming stimulus and builds upwards without preconceived knowledge of what is being observed.

Binocular Depth Cues

Visual information taken in by two eyes that enable us to perceive depth and distance.

Monocular Depth Cues

These are visual information that can indicate distance and depth using just one eye, including texture gradient, interposition, and linear perspective.