A Project Has an Initial Cost of $2,100

question 17

Multiple Choice

A project has an initial cost of $2,100. The cash inflows are $0,$500,$900,and $700 over the next four years,respectively. What is the payback period?

• A) 1 years
• B) 2 years
• C) 3 years
• D) 4 years
• E) never

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Definitions:

F Value

A statistic used in analysis of variance (ANOVA) to determine if the means of three or more variables differ significantly.

Omnibus

An overarching term used to describe a single document or collection containing multiple individual items, often used in legal or legislative contexts.

ANOVA

Short for Analysis of Variance, a statistical method used to compare the means of three or more samples to understand if at least one of the sample means significantly differs from the others.

Level of Significance

The threshold below which a result is considered statistically significant, often denoted by alpha (α), commonly set at 0.05 or 5%.