Consider a Project That Requires an Investment of $22,500 Today

question 7

Multiple Choice

Consider a project that requires an investment of $22,500 today and pays $5,250 per year for ten years.What is the payback period of the project? Assume the cost of capital is 12 percent.

• A) 4.29 years
• B) 4.52 years
• C) 4.71 years
• D) 4.93 years

---

Definitions:

Anhedonia

A condition characterized by a diminished ability to experience pleasure or interest in activities that typically bring joy, often associated with depression and other mood disorders.

Serotonin

is a neurotransmitter that plays a key role in mood regulation, appetite, and sleep.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting mood and arousal.

Neurotransmitters

Chemical substances in the nervous system that transmit signals between neurons or from neurons to muscles, influencing many aspects of both physical and psychological function.