Norbert Is Considering a Project with an Initial Value of $125,000.Cash

question 37

Multiple Choice

Norbert is considering a project with an initial value of $125,000.Cash inflows during the next 6 years will be $35,000 per year.Given this information, provide the project's payback.

• A)5.17 years
• B)4.57 years
• C)4.17 years
• D)3.57 years

---

Definitions:

Uniform Distribution

A type of probability distribution where all outcomes are equally likely; any one of several outcomes has an equal chance of occurring.

Random Variable

A variable that takes on a set of possible values, each with an associated probability, representing outcomes of a statistical experiment.

Probability

A measure quantifying the likelihood that an event will occur, expressed on a scale from 0 to 1.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely over a given range.