Bey Bikes Is Considering a Project That Has the Following

question 79

Multiple Choice

Bey Bikes is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $\begin{array}{lcccc}\text { WACC: } & 10.00 \% \\\text { Year: } & 0 & 1 & 2 & 3 &4\\\hline \text { Cash flows: } & -\$ 1,000 & \$ 525 & \$ 485 & \$ 445 & \$ 405\end{array}$

• A)1.72 years
• B)1.92 years
• C)2.13 years
• D)2.36 years

---

Definitions:

Advertising Wearout

The phenomenon where repeated exposure to an advertisement leads to decreased consumer attention and diminished effectiveness.

Stimulus Discrimination

the ability to differentiate between similar stimuli and respond differently based on their distinct features.

Backward Conditioning

A learning process where a conditioned stimulus is presented after the unconditioned stimulus, generally considered ineffective.

Licensing

A business arrangement in which one party allows another to use its brand, patent, or intellectual property in exchange for a fee or royalty.