The Following Four-Year Project Has an Initial Cost of $1,000,000

question 36

Multiple Choice

The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $600,000, $500,000, $400,000, and $400,000, respectively. If the rate of return is 12%, determine the discounted payback period for this project.

• A) 2.74 years
• B) 2.44 years
• C) 2.23 years
• D) 1.94 years
• E) 1.74 years

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Definitions:

Social Norms

Shared rules or guidelines within a group or society that dictate acceptable behavior, attitudes, and values, often unspoken and learned through social interaction.

Casual Dresser

A style of dressing that emphasizes comfort and personal expression over formal attire and uniformity.

Nicely Tailored Suit

A Nicely Tailored Suit is a suit that has been custom-fitted and altered by a tailor to perfectly fit an individual's body measurements, enhancing appearance and comfort.

Social Loafing

The tendency for people in a group to exert less effort when pooling their efforts toward attaining a common goal than when individually accountable.