An Investment Project Is Expected to Yield $10,000 in Annual

question 32

Multiple Choice

An investment project is expected to yield $10,000 in annual revenues,has $2,000 in fixed costs per year,and requires an initial investment of $5,000.Given a cost of goods sold of 60 percent of sales,what is the payback period in years?

• A)2.50
• B)5.00
• C)2.00
• D)1.25

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Definitions:

Perpetual Betas

Refers to software or systems that are continuously updated and improved upon, never considered to be in a final or complete state.

Network Effects

The phenomenon where the value or utility of a product or service increases as more people use it, often seen in social media platforms and online marketplaces.

Reputation Economies

Systems where the value is assigned based on the reputation of users, often found in online platforms where contributions are judged by community feedback.

Digital Natives

Individuals who have grown up with access to digital technology from an early age, making them inherently comfortable with using and adapting to new digital environments.