Nestor Company Is Considering the Purchase of an Asset for $100,000.It

question 149

Multiple Choice

Nestor Company is considering the purchase of an asset for $100,000.It is expected to produce the following net cash flows.The cash flows occur evenly throughout each year. Compute the payback period for this investment.

• A)2.85 years.
• B)2.57 years.
• C)3.00 years.
• D)2.50 years.
• E)3.62 years.

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Definitions:

Depressed People

Individuals who are experiencing a persistent feeling of sadness or loss of interest, which can affect their daily functioning.

Nondepressed People

Individuals who do not clinically exhibit symptoms of depression or depressive disorder.

Self-Handicapping

A strategy where individuals create obstacles and excuses to avoid self-blame when they do poorly.

High Self-Esteem

Possessing a positive and confident perception of oneself.