Cranium,Inc

question 16

Multiple Choice

Cranium,Inc.is considering a four-year project that has an initial outlay or cost of $100,000.The respective future cash inflows from its project for years 1,2,3 and 4 are: $50,000,$40,000,$30,000 and $20,000.Will it accept the project if it's payback period is 26 months?

• A)Yes,because it pays back in 25 months.
• B)No,because it pays back in 28 months.
• C)No,because it pays back in over 31 months.
• D)No,because it pays back in over 35 months.

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Definitions:

The Dream

According to Daniel Levinson and his colleagues, the drive to become someone, to leave one’s mark on history, which serves as a tentative blueprint for the young adult.

Boomerang Generation

Young adults who return to live with their parents after a period of independence, often due to economic factors.

Financial Reasons

Refers to the monetary factors or considerations that influence decisions, actions, or outcomes.

Reciprocity

The mutual exchange of privileges, goods, or services as well as attitudes, behaviors, and social support among individuals or groups.