Compute the Payback Statistic for Project Y and Recommend Whether

question 27

Multiple Choice

Compute the payback statistic for Project Y and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 11 percent and the maximum allowable payback is one year. $$\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flow: } & - 100 & 75 & 100 & 300 & 75 & 200 \\\hline\end{array}$$

• A)1.25 years, reject
• B)1.25 years, accept
• C)1.33 years, accept
• D)2.25 years, accept

---

Definitions:

Accommodation Strategy

An approach in conflict resolution where one party meets the needs of the other party while neglecting their own interests.

"Lose-Lose"

A situation or outcome where all parties involved suffer losses or negative consequences.

Compromising

A conflict resolution strategy that involves mutual concession to reach a mutually acceptable agreement.

Conflict Management Strategies

Approaches used to handle, resolve, or mitigate conflicts in interpersonal or group settings.