An Investment with an Initial Cost of $15,000 Produces Cash

question 28

Multiple Choice

An investment with an initial cost of $15,000 produces cash flows of $5,000 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) 3
• B) 3.2
• C) 3.75
• D) 4
• E) 5

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Definitions:

Vivid Vision

A detailed and clear description of a future state or goal that one aims to achieve, often used for motivation and strategic planning.

Business Model Canvas

A visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances, facilitating an understanding of a business model.

Entrepreneur

An individual who creates and manages a business venture with the aim of profit-making while taking on financial risk.

Business Model Canvas

A strategic management template for developing new or documenting existing business models visually.