Consider a Ten-Year Project That Costs $40,000 Today, Which Is

question 108

Multiple Choice

Consider a ten-year project that costs $40,000 today, which is expected to generate $6,000 at the end of the second year and then the cash flows will increase by $1,000 for three years and then stagnate for the rest of the project life.The cost of capital is 8%.What is discounted payback period?

• A)8.99 years
• B)8.34 years
• C)7.71 years
• D)7.17 years

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Definitions:

Forcing

A conflict resolution style where one party aggressively pursues its own interests at the expense of others.

Avoiding

A conflict management strategy where one or more parties decide not to engage or confront the issue at hand.

Accommodating Conflict-Management

A conflict resolution method where one party gives in to the wishes or demands of another to maintain harmony.

Smoothing Over Disagreements

The act of attempting to resolve conflicts or differences in opinion in a calm and amicable manner.