Scott Is Considering a Project That Will Produce Cash Inflows

question 33

Multiple Choice

Scott is considering a project that will produce cash inflows of $2,100 a year for 4 years. The project has a 12 percent required rate of return and an initial cost of $5,000. What is the discounted payback period?

• A)2.97 years
• B)3.11 years
• C)3.26 years
• D)4.38 years
• E)never

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Definitions:

Mitochondria

Organelles found in the cytoplasm of eukaryotic cells, responsible for producing energy in the form of ATP through cellular respiration.

Eukaryotic Cells

Cells that contain a nucleus and other organelles enclosed within membranes, distinguishing them from prokaryotic cells.

Prokaryotic Cells

Simple, unicellular organisms lacking a nucleus and other membrane-bound organelles, which include bacteria and archaea.

Glycocalyx

A coating on the outside of an animal cell, formed by the polysaccharide portions of glycoproteins and glycolipids associated with the plasma membrane