The Management of Lanzilotta Corporation Is Considering a Project That

question 318

Multiple Choice

The management of Lanzilotta Corporation is considering a project that would require an investment of $263,000 and would last for 8 years. The annual net operating income from the project would be $66,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.) :

• A) 3.8 years
• B) 2.6 years
• C) 2.7 years
• D) 4.0 years

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Definitions:

Test-Retest Reliability

A measure of consistency where the same test administered to the same group of individuals at two different points in time produces similar results.

Normal Distribution

A bell-shaped frequency distribution where most occurrences take place near the mean and fewer occur as the distance from the mean increases.

Criterion-Referenced Testing

involves evaluating and scoring a test taker's performance based on a specific set of criteria or standards, rather than comparing it to the performance of a peer group.

No Child Left Behind

A U.S. Act aimed at closing the achievement gap with accountability, flexibility, and choice, so that no child is left behind.