If the Cash Flows for Project a Are C₀ =

question 46

Multiple Choice

If the cash flows for project A are C₀ = −1,000; C₁ = +600; C₂ = +400; and C₃ = +1,500, calculate the payback period.

• A)One year
• B)Two years
• C)Three years
• D)Cannot be determined

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Definitions:

Biological Factors

Refers to the genetic, neurological, and physical conditions that affect an individual's development and behavior.

Diathesis-stress Model

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.

Mental Disorders

Conditions characterized by disturbances in a person's thoughts, emotions, or behavior.

Predisposition

A natural inclination or tendency to behave in a certain way or to develop a particular condition based on genetic or environmental factors.