A Company Is Evaluating Three Possible Investments What Is the Payback Period for Project A? (Assume That

question 105

Multiple Choice

A company is evaluating three possible investments.The following information is provided by the company: $$\begin{array} { | l | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 200,000 & \$ 54,000 & \$ 200,000 \\\hline \text { Residual value } & 0 & 20,000 & 24,000 \\\hline \text { Net cash flows: } & & & \\\hline \text { Year 1 } & 52,000 & 36,000 & 94,000 \\\hline \text { Year 2 } & 52,000 & 27,000 & 64,000 \\\hline \text { Year 3 } & 52,000 & 23,000 & 74,000 \\\hline \text { Year 4 } & 52,000 & 20,000 & 34,000 \\\hline \text { Year 5 } & 52,000 & 0 & 0 \\\hline\end{array}$$ What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method.) (Round your answer to two decimal places.)

• A) 2.85 years
• B) 1.50 years
• C) 3.85 years
• D) 5.00 years

Critically assess when improved career-oriented exchanges might not be desirable for followers.

Understand the basic concepts and significance of Leader-Member Exchange (LMX) theory.

Describe the organizational benefits of high-quality leader-member exchanges.

Recognize the distinction between in-group and out-group relationships within LMX theory.

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Definitions:

Large Numbers

Numerical values that are significantly larger than those commonly encountered in everyday life.

Executive Function

Higher-level cognitive processes that enable an individual to plan, organize, strategize, remember details, and manage time and space efficiently.

Higher-Level Cognitive Processes

Refers to complex mental functions such as reasoning, problem-solving, and planning.

Supervising

The act of overseeing and directing the performance of tasks or activities, typically carried out by a person in a position of authority.