Yancy Is Considering a Project Which Will Produce Cash Inflows

question 85

Multiple Choice

Yancy is considering a project which will produce cash inflows of £900 a year for 4 years.The project has a 9% required rate of return and an initial cost of £2,800.What is the discounted
Payback period?

• A)3.11 years.
• B)3.18 years.
• C)3.82 years.
• D)4.18 years.
• E)never.

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Definitions:

AIDA Plan

A marketing model that outlines the process for achieving successful advertising or sales strategies, standing for Attention, Interest, Desire, and Action.

Benefit Them

To have a positive effect on someone or provide them with an advantage.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Generalization

The process or method of formulating general concepts by abstracting common properties of specific instances.