The Payback Period of a Project That Costs $1,000 Initially

question 38

True/False

The payback period of a project that costs $1,000 initially and promises after-tax cash inflows of $2,000 each year for the next three years is 0.5 years.

---

Definitions:

Parental Response

The reaction or behavior of parents in response to a certain behavior, need, or demand from their children.

Similarly

In a manner that shows likeness or comparability in aspects, characteristics, or effects.

Evolutionary Psychology

The theoretical approach in psychology that attempts to explain useful mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Competitive Dispositions

The inherent or developed inclination of individuals or groups to engage in competition, striving to outperform others or achieve superiority.