Consider an Investment with an Initial Cost of $20,000 That

question 69

Multiple Choice

Consider an investment with an initial cost of $20,000 that expected to last for 5 years.The expected cash flows in Years 1 and 2 are $5,000 each,in Years 3 and 4 are $5,500 each,and the Year 5 cash flow is $1,000.Assume each annual cash flow is spread evenly over its respective year.What is the payback period?

• A)3.18 years
• B)3.82 years
• C)4.00 years
• D)4.55 years
• E)None of these

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Definitions:

Sunburn

Damage to the skin resulting from excessive exposure to ultraviolet (UV) radiation, usually from the sun, causing redness, pain, and sometimes blistering.

Third Degree

Relates to the most severe classification of burns, involving full thickness damage through all layers of the skin, leading to significant injury.

Solar Keratosis

A rough, scaly patch on the skin caused by years of sun exposure, often considered a precancerous growth.

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A stimulant medication commonly used to treat attention deficit hyperactivity disorder (ADHD) and certain sleep disorders.