Aroma Candles, Inc

question 77

Multiple Choice

Aroma Candles, Inc. is evaluating a project with the following cash flows. The project involves a new product that will not affect the sales of any other project. Which two methods would always lead to the same accept/reject decision for this project, regardless of the discount rate? Year Cash Flows
0 ($120,000)
1 $30,000
2 $70,000
3 $90,000

• A) Payback and Discounted Payback
• B) NPV and Payback
• C) NPV and IRR
• D) Discounted Payback and IRR

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Definitions:

Perceptual Learning

The process of learning to recognize patterns, objects, and environments through sensory experience.

Subjective Contours

Visual illusions in which contours are perceived where none actually exist, suggesting the mind's ability to create edges and shapes from visual cues.

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into whole objects rather than perceiving their individual parts separately.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in its distance from the viewer.