You Are Considering a Project with an Initial Cost of $6,400

question 401

Multiple Choice

You are considering a project with an initial cost of $6,400. What is the payback period for this project if the cash inflows are $900, $1,350, $2,800, and $1,500 a year over the next four years,
Respectively?

• A) 3.21 years
• B) 3.48 years
• C) 3.90 years
• D) 4.21 years
• E) 4.90 years

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Definitions:

Ecological Fallacy

The error in reasoning that occurs when incorrect conclusions about individual-level processes are drawn from group-level data.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Stereotypes

Overgeneralized beliefs about a particular category of people, which can influence perceptions and behavior in a biased way.

Prejudice

Preconceived opinion or judgment without adequate information or experience, often leading to biased attitudes towards individuals or groups.