If the Required Return Is 12%, What Is the Discounted

question 144

Multiple Choice

If the required return is 12%, what is the discounted payback period of the following cash flows?

• A) 2 years
• B) 3 years
• C) 4 years
• D) 5 years
• E) The project does not pay back on a discounted basis.

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Definitions:

Financial Ratio

A quantitative measure derived from a company's financial statements used to gauge its performance, financial health, and conditions.

Progress Control

A management technique that involves the monitoring and evaluating of the progress of a project or plan to ensure it meets its objectives within the designated time frame.

SWOT Analysis

A strategic planning technique used to identify a company's internal Strengths and Weaknesses, as well as its external Opportunities and Threats.

Staircase Analysis

A step-by-step approach to dissect and understand the progression or development of an event, process, or data set.