A Firm Is Evaluating a Proposal Which Has an Initial

question 21

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $35,000 and has cash flows of $10,000 in year 1, $20,000 in year 2, and $10,000 in year 3. The payback period of the project is ________.

• A) 1 year
• B) 2 years
• C) between 1 and 2 years
• D) between 2 and 3 years

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Definitions:

Conflict Triggers

Factors or situations that can cause disagreements or disputes within a group.

Personality Clashes

Conflicts or disagreements resultant from differences in character, temperament, or preferences among individuals.

Time Pressure

The stress experienced when one perceives that there is not enough time available to perform a task or meet a deadline.

Communication Breakdowns

Disruptions or failures in the process of exchanging information that can lead to misunderstandings, conflicts, and inefficiencies within organizations.