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

---

Definitions:

Defamation of Character Lawsuit

legal action initiated because of false statements made that cause damage to someone's reputation.

Previous Employers

Organizations where an individual has worked prior to their current or prospective employment, often contacted for references or verification.

EEOC Lawsuit

Legal action initiated based on a complaint of discrimination (regarding race, gender, age, disability, etc.) filed with the Equal Employment Opportunity Commission.

Educational Achievements

The accomplishments or qualifications obtained through formal schooling or training.