A Company Is Considering Two Projects -Refer to the Figure

question 18

Multiple Choice

A company is considering two projects.
$$\begin{array} { l l l } & \text { Project A } & \text { Project B } \\\text { Initial investment } & \$ 150,000 & \$ 150,000 \\\text { Cash inflow Year 1 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 2 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 3 } & \$ 50,000 & \$ 40,000 \\\text { Cash inflow Year 4 } & \$ 50,000 & \$ 60,000 \\\text { Cash inflow Year 5 } & \$ 50,000 & \$ 80,000\end{array}$$
-Refer to the Figure.What is the payback period for Project A?

• A)2 years
• B)2.5 years
• C)3 years
• D)3.5 years

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Definitions:

Conflict Intervention Model

A structured approach to address and resolve disputes or disagreements within a team or organization, aiming to restore harmony and improve functioning.

Guiding Principles

Fundamental beliefs or standards that drive behavior and decision-making within an individual or organization.

Minority Influence

The process by which a smaller number of individuals affects the opinions or behaviors of the larger group.

Convergent Thinking

Convergent Thinking is a problem-solving process that involves combining different ideas and knowledge to determine a single, correct solution to a problem.