A Firm Is Evaluating a Proposal Which Has an Initial

question 96

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of$15,000 per year for five years. The payback period of the project is

• A) 1.5 years.
• B) 2 years.
• C) 4 years.
• D) 3.3 years.

---

Definitions:

Endorser

A person who signs the back of a negotiable instrument, such as a check, thereby transferring ownership or guaranteeing its payment.

Endorsement

Official approval or support of an idea, product, or entity, often documented or publicized.

Interpersonal Barrier

Obstacles to effective communication and interaction between individuals, often rooted in misunderstandings, personal biases, or social norms.

Lack Of Trust

The absence of confidence or belief in the reliability, truth, ability, or strength of someone or something.