Scott Is Considering a Project That Will Produce Cash Inflows

question 17

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 $6,000.What is the discounted payback period?

• A)3.72 years
• B)3.91 years
• C)4.26 years
• D)4.38 years
• E)never

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Definitions:

Extensor Digitorum Longus

A muscle in the lower leg that helps to extend the toes and dorsiflex the foot, aiding in walking and running.

Fibularis Tertius

A small muscle in the lower leg that helps with foot eversion and extension of the toes.

Gastrocnemius

A major calf muscle that is involved in walking, running, and jumping, aiding in the bending of the knee and the plantar flexion of the foot.

Antagonistically

Describes muscles that work in opposition to each other to enable movement, as when one muscle contracts, the antagonist relaxes.