A Project Has an Initial Cost of $12,300 and Produces

question 27

Multiple Choice

A project has an initial cost of $12,300 and produces cash inflows of $5,200,$5,300,and $4,800 over Years 1 to 3,respectively.What is the discounted payback period if the required rate of return is 12 percent?

• A)2.13 years
• B)2.34 years
• C)2.78 years
• D)2.91 years
• E)Never

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Definitions:

ATP

Adenosine Triphosphate, a molecule that stores and transfers energy within cells, critical for metabolic processes.

Lactic Acid

An organic compound produced in muscles during intense activity and associated with muscle fatigue.

Cardiorespiratory Functioning

The ability of the heart and lungs to supply oxygen-rich blood to the muscles during sustained physical activity.

ATP-CP System

A short-term energy system that provides immediate energy through the breakdown of adenosine triphosphate (ATP) and creatine phosphate (CP) during high-intensity, short-duration exercises.