A Project Has the Following Cash Flows

question 81

Multiple Choice

A project has the following cash flows.What is the payback period?

• A)2.83 years
• B)2.38 years
• C)2.75 years
• D)2.92 years
• E)3.03 years

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Definitions:

Mitigate Loss

The requirement for a party suffering loss to take reasonable action to minimize the amount of loss suffered.

Fundamental Breach

A serious violation of a contract that allows the affected party to terminate the agreement and seek damages.

Foreseeable Loss

A loss that a reasonable person could expect to happen as a result of an action or inaction.

Specific Performance

A legal remedy in contract law that requires a party to fulfill their contractual obligations, as opposed to paying damages.