A Project Has an Initial Cost of $18,400 and Produces

question 52

Multiple Choice

A project has an initial cost of $18,400 and produces cash inflows of $7,200,$8,900,and $7,500 over three years,respectively.What is the discounted payback period if the required rate of return is 16 percent?

• A)2.31 years
• B)2.45 years
• C)2.55 years
• D)2.62 years
• E)never

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Definitions:

Spreading Activation

A model in cognitive psychology, suggesting that activating one concept in the memory network triggers the activation of related concepts.

Activation Dissipate

The process through which activated physiological or psychological states return to baseline or diminish in intensity over time.

Mother Node

In a tree data structure, the initial topmost node from which all other nodes descend.

Semantic Priming

A psychological effect in which the understanding or processing of a word is influenced by a prior exposure to a semantically related word or concept.