The Blue Goose Is Considering a Project with an Initial

question 72

Multiple Choice

The Blue Goose is considering a project with an initial cost of $42,700. The project will produce cash inflows of $8,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?

• A) 2.87 years
• B) 3.23 years
• C) 3.41 years
• D) 3.79 years
• E) 4.23 years

---

Definitions:

Nonverbal Communication

The transfer of information through non-linguistic signs, such as facial expressions, gestures, and body language, as opposed to verbal communication.

Low Context

Communication style in which messages are explicit and specific, not relying heavily on the context or non-verbal cues to convey meaning.

Statutory Law

Legally enacted; deriving authority from law.