If the Initial Investment Is a Project Is $100,000 and the Expected

question 41

Multiple Choice

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:

• A) One fifth of a year
• B) 4 years
• C) 5 years
• D) 10 years
• E) insufficient information to determine the payback period

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Definitions:

Diffusion of Responsibility

A psychological phenomenon in which individuals in a group are less likely to take action or feel responsible because the presence of others is seen to dilute personal responsibility.

Just World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an undeserved, bad outcome as deserved.

Moral Foundation Theory

A social psychological theory that describes the origins of human moral reasoning on the basis of innate, modular foundations.

Moral Decisions

Decisions that involve the judgment of right or wrong, often based on a set of societal or personal ethical principles.