If the Initial Investment Is a Project Is $100,000 and the Expected

question 46

Multiple Choice

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000,the payback period is:

• A) 5 years
• B) 4 years
• C) One fifth of a year
• D) 10 years
• E) insufficient information to determine the payback period

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Definitions:

Inelastic Demand

A market situation where the quantity demanded of a good or service changes very little with a change in its price.

Agricultural Products

Physical goods produced through farming or the broader agricultural sector, including both food items and raw materials.

Sugar Price Support

Government intervention to stabilize or increase the market price of sugar through mechanisms such as tariffs, quotas, or direct subsidies to farmers.

U.S. Labor Force

Comprises all the people actively seeking employment and those currently employed within the United States, whether in full-time or part-time positions.