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:

Loudness

A perceptual attribute of sounds that is primarily a physiological correlate of sound pressure level, measured in decibels.

Pitch

The perception of how high or low a sound is, depending on the frequency of the sound wave.

Hertz

The unit of frequency in the International System of Units (SI), equating to one cycle per second.

Auditory Neuron

a nerve cell that is involved in the process of hearing, transmitting auditory signals from the ear to the brain.