An Investment Project Has an Initial Cost of $382 and Cash

question 56

Multiple Choice

An investment project has an initial cost of $382 and cash flows $105,$130,$150,and $150 for Years 1 to 4,respectively.The cost of capital is 9 percent.What is the discounted payback period?

• A)2.76 years
• B)3.57 years
• C)3.42 years
• D)3.68 years
• E)2.92 years

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Demand Curves

Graphical representations of the relationship between the price of a good or service and the quantity demanded by consumers at those prices.

Youthful Americans

Individuals in the United States who are considered to be in their youth, typically defined by a young age range.

Quantity Demanded

The sum of a product or service that buyers are ready and capable of buying at a certain price during a defined timeframe.