A Company Is Considering a 5-Year Project with an Initial

question 15

Multiple Choice

A company is considering a 5-year project with an initial investment of $90,000.Cash inflows will be $30,000 for the first two years and $25,000 for the next 3 years.If the company's required rate of return is 12%, determine its discounted payback.

• A)4.40years
• B)3.60 years
• C)3.80 years
• D)4.00 years

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Definitions:

Similarity Manipulation

A technique used to alter or influence perceptions of similarity between subjects in psychological or market research studies.

Confederate

An individual who is part of a group with a common cause or goal, often used in the context of experimental research to describe a person who is secretly working with the experimenter.

Egoism

Egoism is a theory or philosophy where the self-interest or self-concern is the foundation of morality, prioritizing one's own benefit in decision-making.

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions as opposed to indifferent or hostile actions.