Scott Is Considering a Project That Will Produce Cash Inflows

question 82

Multiple Choice

Scott is considering a project that will produce cash inflows of $2,900 a year for 3 years. The required rate of return is 15.4 percent and the initial cost is $6,800. What is the discounted payback period?

• A) Never
• B) .91 years
• C) .26 years
• D) 1.28 years
• E) 1.39 years

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Definitions:

Identity

The fact of being who or what a person or thing is; a distinct personality of an individual regarded as a persisting entity.

Role Confusion

Occurs when individuals are unsure about their place or role in society, often experienced during adolescence as part of identity development.

Basic Trust

A sense of trust and security fundamentally formed during infancy, as outlined in Erik Erikson's stages of psychosocial development.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with independence and self-governance.