Compute the Discounted Payback Statistic for Project Y and Recommend

question 66

Multiple Choice

Compute the discounted payback statistic for Project Y and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is three years.
$$\begin{array}{l}\begin{array} {| l | l | l | l | l | l | l |}\hline\text {Time: }&0&1&2&3&4&5\\\hline\text {Cash flow:}&-5,000&500&2,000&3,000&1,500&500\\\hline\end{array}\end{array}$$

• A) 3.45 years, reject
• B) 3.86 years, reject
• C) 3.45 years, accept
• D) 3.86 years, accept

Identify the role and function of various digestive enzymes and substances.

Understand the relationship between income changes and the classification of goods as inferior or normal.

Analyze the effects of price changes on consumer demand through the substitution and income effects.

Define and identify Giffen goods and their characteristics.

---

Definitions:

Alcohol

A psychoactive substance, specifically ethanol, which is commonly consumed in beverages and can alter consciousness and impair cognitive and motor functions.

Tendency to Aggress

A predisposition or inclination in individuals to engage in hostile or violent behaviors.

Curvilinear Relationship

Describes a relationship between two variables where the effect increases to a point then begins to decrease or vice versa.

Script

A schema about an event.