Homer Is Considering a Project with Cash Inflows of $950

question 73

Multiple Choice

Homer is considering a project with cash inflows of $950 a year for Years 1 to 4,respectively.The project has a required discount rate of 11 percent and an initial cost of $2,100.What is the discounted payback period?

• A)3.05 years
• B)2.68 years
• C)3.39 years
• D)2.21 years
• E)Never

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Definitions:

Cause-and-effect Relationships

Connections between actions or events such that one or more are the result of the other or others.

Non-financial Performance

A measure of a company's effectiveness and efficiency in areas not directly related to financial metrics, such as customer satisfaction and employee engagement.

Operational Level

Pertains to the day-to-day activities and decisions within an organization that contribute to its overall performance.

Improved Profitability

An increase in the net profit margin, indicating better efficiency in managing costs or increasing sales revenues.