Fill in the Lettered Blanks in the Following Table

question 53

Essay

Fill in the lettered blanks in the following table: $\begin{array}{lrrr}&\text { Investment }A&\text { Investment }B&\text { Investment }C\\\text { Amount of investment } & \$ 40,000 & (\mathrm{~A}) & \$ 20,000 \\\text { Economic life in years } & 10 & 5 & 8 \\\text { Annual cash flow } & \$ 5,000 & \text { (B) } & \$ 2,500\\\text { Payback period in years } & (\mathrm{C}) & 4 & \text { (D) } \\\text { Present value of cash flows } & (\mathrm{E}) & \$ 33,000 & (\mathrm{~F}) \\\text { Net present value } & \$ 5,500 & \$ 3,000 & (\$ 1,000)\end{array}$

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Definitions:

Residuals

The differences between observed and predicted values in a regression analysis.

Predicted Values

The estimated values based on a statistical model when applied to a set of independent variables.

Residuals

Differences between observed values and estimated values in statistical models, indicating the disparity from actual to predicted results.

Errors

Mistakes or inaccuracies in data, calculations, or actions that can alter outcomes and interpretations.