Acme,Incis Considering a Four-Year Project That Has Initial Outlay or Cost

question 44

Multiple Choice

Acme,Inc.is considering a four-year project that has initial outlay or cost of $100,000.The respective cash inflows for years 1,2,3 and 4 are: $50,000,$40,000,$30,000 and $20,000.Acme uses the discounted payback period method,and has a discount rate of 11.50%.Will Acme accept the project if it's payback period is 38 months?

• A)Yes,because it pays back in less than 38 months.
• B)No,because it pays back in over 38 months.
• C)Yes,because it pays back in under 37 months.
• D)No,because it pays back in over 37 months.

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Definitions:

Yellowstone Park

A national park primarily in Wyoming, extending into Montana and Idaho, known for its wildlife and geothermal features, especially Old Faithful geyser.

Naturalistic Observation

A research method that involves observing subjects in their natural environment without interference.

Clinical Observation

The practice of assessing and monitoring patients in a healthcare setting, utilizing direct observation to inform diagnosis or treatment plans.

Direct Observation

A research method where phenomena are studied in their natural setting without manipulation.