A Project Has an Initial Cost of $47,500 and Produces

question 319

Multiple Choice

A project has an initial cost of $47,500 and produces cash inflows of $21,200, $24,800, and $21,500 over the next three years, respectively. What is the discounted payback period if the
Required rate of return is 14 percent?

• A) 2.07 years
• B) 2.13 years
• C) 2.46 years
• D) 2.68 years
• E) 2.74 years

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Definitions:

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can negatively affect the performance and behavior of individuals.

Self-construal

An individual's perception of the self in relation to others and the environment, encompassing aspects of individualism and collectivism.

Anxiety

Anxiety is a feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome, which can significantly influence consumer behavior and decision-making.

Confirmation Anxiety

The apprehension or unease experienced when seeking to affirm or validate one's beliefs or decisions, often fearing contrary evidence.