Cheryl Peck Purchased a Computer Network for Her Classroom

question 60

Multiple Choice

Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 12 percent, what is the approximate payback period for this investment?

• A) 1.87 years
• B) 2.75 years
• C) 4.00 years
• D) 1.19 years

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Definitions:

Trait Approach

A theory in leadership studies that assumes leaders possess certain inherent traits that make them effective.

Self-confidence

The belief in one’s own abilities and judgment, often seen as a critical trait for effective leadership and decision-making.

Leader Characteristics

Attributes or qualities possessed by individuals that enable them to guide, influence, or direct a group towards the achievement of goals.

Trait Approach

A framework used in psychology to study personality, focusing on the identification and measurement of specific characteristics that differentiate individuals.