You Are Considering a Project with an Initial Cost of $7,500.What

question 68

Multiple Choice

You are considering a project with an initial cost of $7,500.What is the payback period for this project if the cash inflows are $1,100,$1,640,$3,800,and $4,500 a year over the next four years,respectively?

• A)3.21 years
• B)3.28 years
• C)3.36 years
• D)4.21 years
• E)4.29 years

---

Definitions:

COV

A statistical measure expressed as a coefficient indicating the relative dispersion of a dataset or the ratio of the standard deviation to the mean.

Coefficient Of Correlation

A statistical measure that quantifies the degree to which two variables' movements are associated, ranging from -1 to 1.

COV

Coefficient of Variation, a standardized measure of the dispersion of a probability distribution or frequency distribution.

Bivariate Distribution

A probability distribution describing two random variables and how their probabilities are distributed over different ranges of values.