Taggart Inc $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,075 & \$ 500 & \$ 500 & \$ 500\end{array}$$

question 86

Multiple Choice

Taggart Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,075 & \$ 500 & \$ 500 & \$ 500\end{array}$$

• A) 2.15 years
• B) 1.70 years
• C) 2.11 years
• D) 1.81 years
• E) 2.45 years

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Definitions:

Empirical Reasoning

A method of thought that involves making conclusions based on observed and verified evidence.

Ideological Reasoning

The process of thinking that is heavily influenced by a predetermined set of beliefs or ideology.

Economic Growth

An increase in the production of goods and services over a specific period, often measured by GDP.

Ideological Reasoning

Reasoning guided by a set of beliefs or a specific ideology rather than empirical evidence or logical analysis.