A Firm Is Evaluating a Potential Investment That Is Expected

question 117

Multiple Choice

A firm is evaluating a potential investment that is expected to generate cash flows of $100 in years 1 through 4 and $400 in years 5 through 7. The initial investment is $750. What is the payback for this investment?

• A) 4.88 years
• B) 4.48 years
• C) 5.88 years
• D) 5.48 years

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Definitions:

Worker Stress

The physical and emotional stress experienced by workers due to the demands of their job, often resulting in reduced productivity and wellbeing.

Policies

A set of principles or rules created to guide decisions and achieve rational outcomes within a specific field or organization.

Procedures

Procedures are established methods or sequences of steps followed to complete a task or achieve a specific goal, often documented to ensure consistency and efficiency.

Compliance

The act of following and adhering to laws, regulations, standards, and ethical practices within a business or societal context.