A Company Is Considering Two Projects -Refer to the Figure

question 58

Multiple Choice

A company is considering two projects.
$\begin{array}{lrr} & \text { Froject I } & \text { Froject II } \\\text { Initial investment } & \$ 60,000 & \$ 60,000 \\\text { Cash inflow Year 1 } & \$ 30,000 & \$ 15,000 \\\text { Cash inflow Year 2 } & \$ 30,000 & \$ 15,000 \\\text { Cash inflow Year 3 } & \$ 30,000 & \$ 30,000 \\\text { Cash inflow Year 4 } & \$ 30,000 & \$ 70,000 \\\text { Cash inflow Year 5 } & \$ 30,000 & \$ 70,000\end{array}$
-Refer to the Figure.What is the payback period for Project I?

• A)1 year
• B)2 years
• C)2.5 years
• D)3 years

---

Definitions:

Skin Sensations

Feelings perceived through the skin, including touch, pressure, heat, cold, and pain, mediated by the nervous system.

Pressure

The feeling of stressful urgency caused by the perception of the need to perform well in a situation or accomplish a task.

Color Constancy

The perceptual property by which the color of an object appears the same under varying lighting conditions.

Sunglasses

Eyewear designed to protect the eyes from excessive sunlight and UV rays.