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:

Price Floor

A government or group-imposed limit that prevents prices of goods or services from falling below a certain level.

Equilibrium Price

The price in the market where the amount of products offered matches the amount of products people want to buy.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing a home or apartment.