You Are Considering an Investment Which Has the Following Cash

question 309

Multiple Choice

You are considering an investment which has the following cash flows. If you require a four year payback period, should you take the investment?

• A) Yes, the payback is 1.000 years.
• B) Yes, the payback is 2.675 years.
• C) Yes, the payback is 3.375 years.
• D) No, the payback is 4.125 years.
• E) No, the payback is 5.500 years.

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Definitions:

Strokes

Medical conditions that occur when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from getting oxygen and nutrients, causing cells to die.

Type A Personality

A personality trait characterized by high levels of competitiveness, self-driven ambition, impatience, and a constant sense of urgency.

Competitive

Refers to a situation, environment, or attitude marked by a striving for superiority, success, or winning, often against others.

Hard-Driving

A personality trait characterized by competitiveness, aggression, impatience, and a sense of urgency, often associated with stress and health risks.