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A Company Is Considering Two Projects -Refer to the Figure

question 128

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A company is considering two projects.
 Project A  Project B  Initial investment $150,000$150,000 Cash inflow Year 1 $50,000$40,000 Cash inflow Year 2 $50,000$40,000 Cash inflow Year 3 $50,000$40,000 Cash inflow Year 4 $50,000$60,000 Cash inflow Year 5 $50,000$80,000\begin{array} { l l l } & \text { Project A } & \text { Project B } \\\text { Initial investment } & \$ 150,000 & \$ 150,000 \\\text { Cash inflow Year 1 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 2 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 3 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 4 } & \$ 50,000 & \$ 60,000 \\\text { Cash inflow Year 5 } & \$ 50,000 & \$ 80,000\end{array}
-Refer to the Figure.What is the payback period for Project B?

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Definitions:

Reason

The power of the mind to think, understand, and form judgments by a process of logic.

Dogmatism

The tendency to lay down principles as incontrovertibly true, without consideration of evidence or the opinions of others.

Authoritarianism

A leadership style marked by strict adherence to authority and control, often at the expense of individual freedom and creativity.

Sensation-Type

This term appears to relate to psychological typologies, possibly referring to a preference for sensory input and practical experiences in decision-making processes.

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