Supply the Missing Data for Each of the Following Proposals

question 76

Essay

Supply the missing data for each of the following proposals:
$$\begin{array} { | l | c | c | c | } \hline & \text { Proposal A } & \text { Proposal B } & \text { Proposal C } \\\hline \text { Initial investment } & \text { (a) } & \$ 62,900 & \$ 226,000 \\\hline \text { Annual net cash inflow } & \$ 60,000 & ( \mathrm { c } ) & ( \mathrm { e } ) \\\hline \text { Life, in years } & 10 & 6 & 10 \\\hline \text { Salvage value } & \$ 0 & \$ 10,000 & \$ 0 \\\hline \text { Payback period in years } & \text { (b) } & ( \mathrm { d } ) & 5.65 \\\hline \text { Internal rate of return } & 12 \% & 24 \% & ( \mathrm { f } ) \\\hline\end{array}$$

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, used to quantify the amount of variation or dispersion of a set of values.

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits.

Aggregate Consumption

The total amount of goods and services consumed in an economy, often used to analyze economic health and growth.

Consumption Function

A concept in economics that calculates the expected total consumption of goods and services by individuals at different income levels.