A Company Is Considering a Proposal to Invest $22,000 in a Project

question 55

Essay

A company is considering a proposal to invest $22,000 in a project that would provide the following net cash flows:
$$\begin{array} { r r } \text { Year 1 } & \$ 2,000 \\\text { Year 2 } & 4,000 \\\text { Year 3 } & 15,000 \\\text { Year 4 } & 18,000\end{array}$$ Compute the project's payback period.

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Definitions:

Robert Merton

A prominent American sociologist who contributed to the sociology of science and developed the theory of deviance, including the concept of self-fulfilling prophecy.

Racial Conflict

A type of conflict arising when individuals or groups from different racial or ethnic backgrounds come into opposition or combat due to perceived or actual differences and inequalities.

Spoiled Identity

A concept introduced by Erving Goffman, referring to an identity that has been tarnished by a stigma, leading to societal disapproval or discrimination.

Stigmatized

Branded with a mark of disgrace or infamy; individuals or groups may be stigmatized due to attributes, behaviors, or identities that are considered socially unacceptable.