You Are Analyzing a Project and Have Gathered the Following

question 9

Multiple Choice

You are analyzing a project and have gathered the following data: $$\begin{array} { c r c } \frac { \text { Year } } { 0 } & \frac { \text { Cash flow } } { } & \\1 & - \$ 175,000 & \\2 & \$ 56,400 & \\3 & \$ 61,800 & \\4 & \$ 72,000 & \\\text { Required payback period } & 2.5 \text { years } \\\text { Required AAR } & 11.5 \text { percent } \\\text { Required return } & 14.5 \text { percent }\end{array}$$ Based on the payback period of _____ years for this project,you should _____ the project.

• A)2.79; accept
• B)3.79; accept
• C)2.46; reject
• D)2.79; reject
• E)3.79; reject

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Definitions:

Dressing

A sterile pad or compress applied to a wound to promote healing and protect from further harm.

Intravenous Catheter

A tube inserted into a vein to provide venous access for the administration of fluids, medications, and nutrients.

Peripheral Intravenous Catheter

A device inserted into a peripheral vein, usually in the hand or arm, to administer medications or fluids.

Continuously Running IV

An intravenous line that delivers fluids, medication, or nutrition without interruption.