You Are Considering an Investment Which Has the Following Cash

question 185

Multiple Choice

You are considering an investment which has the following cash flows. If you require a four year payback period, should you take the investment?

• A) Yes, the payback is 1.000 years.
• B) Yes, the payback is 2.675 years.
• C) Yes, the payback is 3.375 years.
• D) No, the payback is 4.125 years.
• E) No, the payback is 5.500 years.

---

Definitions:

Intramembranous

A method of bone development in which bones form directly from mesenchymal tissue, as seen in certain skull bones.

Endochondral

Endochondral ossification is the process by which cartilage is replaced by bone in the vertebrate skeletal system, essential for the formation of long bones and most of the skeleton.

Basic Multicellular Unit

Functional unit involved in the remodeling of bone tissue, comprising of osteoclasts and osteoblasts.

Osteoblast Activity

The process of bone formation carried out by osteoblasts, cells that synthesize bone matrix and mineral content.