Joe Is Considering Setting Up a Business Selling Free-Range Chickens

question 46

Multiple Choice

Joe is considering setting up a business selling free-range chickens.He estimates his establishment costs will be $600,000 and his net cash flows for the first five years will be $100,000 in year 1,$200,000 in year 2,stabilising at $250,000 in year 3.The payback period for the investment is:

• A) 3 years.
• B) 3.2 years.
• C) 5 years.
• D) 3.8 years.

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Definitions:

Punishment

A process by which a behavior is followed by a consequence that decreases the likelihood of that behavior being repeated.

Rewards

Benefits or positive feedback given for a particular action or behavior, often used as a means of encouragement or reinforcement.

Sociocultural Factors

Aspects of society and culture that influence an individual's behavior, thoughts, and feelings.

Psychological Factors

Aspects of an individual's mental processes that influence their behavior and well-being, such as emotions, attitudes, and motivations.