Use the Information Below to Answer the Following Question(s)

question 145

Multiple Choice

Use the information below to answer the following question(s) .
Latimer Corporation is considering two alternative investment proposals with the following data:

-Brackett Corporation is adding a new product line that will require an investment of $120,000. The product line is estimated to generate cash inflows of $25,000 the first year, $23,000 the second year, and $18,000 each year thereafter for ten more years. What is the payback period?

• A) 4.80 years
• B) 6.00 years
• C) 6.32 years
• D) 6.67 years

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Definitions:

George Kelly

An American psychologist known for his personal construct theory, which focuses on how individuals interpret events.

Construct System

A psychological framework that represents an individual's unique collection of perceptions, beliefs, and attitudes.

Individual Differences

Variations among individuals in their cognitive, emotional, and behavioral characteristics.

Level of Motivation

The intensity and direction of a person's energy and determination to engage in and persist with a particular task or goal.