What Is the Payback Period for the Following Investment

question 415

Multiple Choice

What is the payback period for the following investment?

• A) 4 years
• B) 3 years
• C) 2 years
• D) 1 year
• E) The investment doesn't pay back

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Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, indicating how much the survey results may deviate from the actual population values.

Construct Validity

The degree to which a test measures what it claims to measure, reflecting the accuracy of the concept being evaluated.

Systematic Bias

A consistent and repeatable error in judgment or decision-making that deviates from accuracy due to certain predetermined factors.