A Project Has the Following Cash Flows A)238 Years
B)2

question 2

Multiple Choice

A project has the following cash flows.What is the payback period? $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 28,000 \\\hline 1 & 11,600 \\\hline 2 & 11,600 \\\hline 3 & 6,600 \\\hline 4 & 6,600 \\\hline\end{array}$$

• A)2.38 years
• B)2.49 years
• C)2.74 years
• D)3.01 years
• E)3.33 years

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Definitions:

Positive Punishment

An operant conditioning principle where the introduction of an unfavorable outcome or stimulus following a behavior decreases the likelihood of the behavior occurring again.

Behaviors

Actions or reactions of an individual in relation to the environment or situations.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses required for reinforcement varies randomly around a mean value, promoting high and steady rates of response.

Fixed-Ratio Schedule

A reinforcement strategy in behavioral psychology where a response is rewarded only after a specified number of responses.