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

---

Definitions:

Nonverbal Cues

are the unspoken elements of communication such as gestures, facial expressions, tone of voice, and body language, which convey emotions and attitudes.

Expectancy Violation

A situation where someone's behavior deviates from what is normally anticipated, potentially leading to a reassessment of that individual's competence or intentions.

Perception Checking

A communication technique used to clarify or verify the accuracy of one's understanding of another's words or actions.

Emotional Contagion

The process whereby people mimic the emotions of others after watching and hearing their emotional expressions.