Chester Manufacturing Is Considering a Project That Will Require an Initial

question 24

Multiple Choice

Chester Manufacturing is considering a project that will require an initial investment of $50,000 and is expected to generate future cash flows of $20,000 for years 1 through 3 and $10,000 for years 4 through 7. The project's payback period is:

• A) 2.5 years.
• B) 7 years.
• C) 1.67 years.
• D) 3.33 years.

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Definitions:

Conservation

In psychology, it refers to a child's ability to understand that quantities remain constant despite changes in their shape or arrangement, as elaborated by Jean Piaget. In environmental science, it pertains to the preservation and protection of natural resources.

Object Permanence

The concept that things continue to exist even when they are not visible, audible, or tangible.

Secure Attachment

A type of attachment characterized by trust, a sense of security, and positive relationships, typically developing from consistent caregiver responses in early childhood.

Habituation

The gradual reduction of a response to a stimulus after repeated exposure to it.