An Investment with an Initial Cost of $16,000 Produces Cash

question 3

Multiple Choice

An investment with an initial cost of $16,000 produces cash flows of $5000 annually. If the cash flow is evenly spread out over the year and the firm can borrow at 10%, the discounted payback period is _____ years.

• A) 4.55
• B) 4.05
• C) 3.20
• D) 3.52

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Definitions:

Domestic Servants

Workers employed in households to perform various housekeeping duties, such as cleaning, cooking, and caregiving.

Sharecropping

A system of agriculture where a landowner allows a tenant to use the land in return for a share of the crops produced on the land.

African Americans

A term referring to citizens or residents of the United States who have origins in any of the black populations of Africa.

White Landowners

Historically, individuals of European descent who owned substantial agricultural lands, often in contexts involving racial and economic power dynamics.