Clinton Is Considering a Project That Costs $3,200 Will Produce

question 74

Multiple Choice

Clinton is considering a project that costs $3,200 will produce cash inflows of $980 a year for 4 years.The project has a required rate of return of 8.75 percent.What is the discounted payback period?

• A)3.01 years
• B)3.18 years
• C)3.82 years
• D)4.18 years
• E)Never

---

Definitions:

Tort Remedies

Refers to the legal means available to a court to compensate an individual who has suffered harm due to another's wrongful act, including compensation for damages, injunctions, and restitution.

Indemnification

A legal obligation by one party to compensate another for the loss or damage that has been incurred.

Duty of Performance

The legal obligation of parties in a contract to fulfill their respective tasks or services as outlined in the agreement.

Agency Agreement

A legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.