An Investment with an Initial Cost of $14,000 Produces Cash

question 98

Multiple Choice

An investment with an initial cost of $14,000 produces cash flows of $4,000 annually for 5 years. If the cash flow is evenly spread out over the year and the firm can borrow at 10%,the discounted payback period is _____ years.

• A) 2.5
• B) 2.68
• C) 4.53
• D) 4.87
• E) Never

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Definitions:

Reasonable Measures

Actions or steps that are considered sensible and proportionate to the situation, taken to achieve a specific purpose or to prevent certain outcomes.

Gray Market Goods

Goods lawfully bearing trademarks or using patented or copyrighted material, but imported into a foreign market without the authorization of the owner of the trademark, patent, or copyright.

Counterfeit Goods

Counterfeit goods are imitation products made with the intent to deceive by passing off as genuine articles, often violating trademark laws.

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The process of officially recording or enlisting something at a federal level, often for protection or regulation purposes.