Suppose Your Firm Is Considering Investing in a Project with the Cash

question 103

Multiple Choice

Suppose your firm is considering investing in a project with the cash flows shown as follows,that the required rate of return on projects of this risk class is 10 percent,and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years,respectively.Use the discounted payback decision to evaluate this project; should it be accepted or rejected?

• A)Discounted payback = 4.25 years; accept the project
• B)Discounted payback = 3.50 years; accept the project
• C)Discounted payback > 5 years; reject the project
• D)Discounted payback = 4.67 years; reject the project

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Definitions:

Report Design View

An interface in database applications that allows users to visually create and modify the layout and organization of reports.

Arrow Keys

Keys on a keyboard typically used for moving the cursor or insertion point in a specific direction in text documents or navigating through items in a user interface.

Control

In the context of user interfaces, it refers to elements that allow users to perform actions or input data, such as buttons, sliders, and switches.

Form Layout View

A mode in database applications that allows the user to design or view a form in the context of how it will appear when filled out or printed.