Use the Table for the Question(s)below

question 6

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The payback period for project Alpha is closest to:

• A)3.2 years.
• B)2.9 years.
• C)3.1 years.
• D)2.6 years.

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Definitions:

Internal Validity

The extent to which a study can demonstrate that a causal relationship exists between variables, free from external influences.

Construct Validity

The extent to which a test measures what it claims to be measuring, in the context of psychological testing and research.

Mundane Realism

Refers to whether the setting of an experiment physically resembles the real world.

Reactance

An unpleasant emotional response that people often experience when someone is trying to restrict their freedom.