Tina Invested in a Project with a Payback Period of 4

question 114

Multiple Choice

Tina invested in a project with a payback period of 4 years.The project brings $20,000 per year for a period of 10 years.What was the initial investment?

• A) $80,000
• B) $107,500
• C) $162,000
• D) $240,000
• E) Cannot be determined from this information.

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Definitions:

Standardization

The process of making something conform to a standard in order to ensure consistency and compatibility.

Psychology Test

A standardized procedure designed to measure an individual's behavior and mental processes.

Test Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations.

Divergent Thinking

An imaginative process or tactic employed to devise novel ideas by assessing an array of possible outcomes.