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:

Deep South

A term referring to the southernmost region of the United States characterized by its historical dependence on agriculture, particularly cotton, and a history of racial segregation and significant African American population.

Justified

Considered or declared to be right or reasonable under the circumstances, often used in legal, ethical, or moral contexts.

Spanish-American War

A conflict between Spain and the United States in 1898, resulting from U.S. intervention in the Cuban War of Independence, which led to U.S. acquisition of territories in the western Pacific and Latin America.

Black Units

Military units composed entirely or predominantly of African American soldiers, which have existed within various armed forces around the world.