Worthington Inc $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 500 & \$ 150 & \$ 200 & \$ 300\end{array}$

question 8

Multiple Choice

Worthington Inc.is considering a project that has the following cash flow data.What is the project's payback? $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 500 & \$ 150 & \$ 200 & \$ 300\end{array}$

• A) 2.03 years
• B) 2.25 years
• C) 2.50 years
• D) 2.75 years
• E) 3.03 years

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Definitions:

Interaction Effects

Occur when the effect of one independent variable on a dependent variable changes depending on the level of another independent variable.

Main Effects

The direct, independent impacts of individual independent variables on a dependent variable in the context of factorial designs.

Total Mean

The overall average of a set of numbers or measurements, calculated by summing all the values and dividing by the number of observations.

Total Mean

The overall average of a set of numerical values computed by summing them up and dividing by the count of numbers.