A Project with an Initial Cost of $81,000 Is Expected

question 150

Multiple Choice

A project with an initial cost of $81,000 is expected to produce cash flows of $20,000 per year and net income of $9,000 for each of the next 7 years. The asset has an estimated 7-year life and a $4,000 salvage value. What is the projected payback period?

• A) 4.01 years
• B) 9.0 years
• C) 7.0 years
• D) 0.3 years

---

Definitions:

Self-Concept

A person’s subjective description of who he or she is.

Reflexive Self

The concept that individuals can reflect upon themselves, their thoughts, and their actions, as objects of their own thought.

True Self

The authentic, original, or genuine aspect of a person that represents their deepest beliefs, values, and desires.

Social Comparison

Process of comparing yourself to others who are similar to you, to measure your worth and value.