Compute the Discounted Payback Statistic for Project X and Recommend $$\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 1000 & 500 & 480 & 400 & 300 & 150\end{array}$$

question 16

Multiple Choice

Compute the discounted payback statistic for Project X 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 10 percent and the maximum allowable discounted payback is three years. $$\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 1000 & 500 & 480 & 400 & 300 & 150\end{array}$$

• A)2.49 years, accept
• B)2.98 years, accept
• C)3.49 years, reject
• D)4.98 years, reject

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time.

Brightness

Lightness or luminance; the dimension of visual experience related to the amount (intensity) of light emitted from or reflected by an object.

Dark Room

A room used in photography processing where photographic materials are handled in complete darkness or under a safelight.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the organism's environment into internal electrical impulses.