Use the Table for the Question(s)below

question 27

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows:

-Assume the appropriate discount rate for this project is 15%. The payback period for this project is closest to:

• A)2
• B)4
• C)2.5

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Definitions:

1929

The year marked by the stock market crash in October, which led to the Great Depression, a severe worldwide economic downturn.

High Inflation

Is a term describing a situation where prices for goods and services rise excessively, reducing purchasing power and potentially destabilizing the economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Supply-Side

A macroeconomic theory arguing that economic growth is most effectively created by lowering taxes and decreasing regulation.