It Will Cost $9,600 to Acquire an Ice Cream Cart

question 4

Multiple Choice

It will cost $9,600 to acquire an ice cream cart that is expected to produce cash inflows of $3,600 a year for three years. After the three years, the cart is expected to be worthless. What is the payback period?

• A) 1.82 years
• B) 2.67 years
• C) 2.82 years
• D) 1.67 years
• E) 1.79 years

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Definitions:

Laughed At

being the subject of amusement or ridicule by others, often leading to feelings of embarrassment or humiliation.

Correct

Conforming to fact or truth; free from error, accurate or precise.

Asch Studies

A series of psychological experiments conducted by Solomon Asch studying if and how individuals yielded to or defied a majority group and the effect of such influences on beliefs and opinions.

Conformity Pressures

The influence that peers or societal norms have on an individual's behavior and beliefs, often leading to changes to match those norms.