(Ignore Income Taxes in This Problem

question 8

Multiple Choice

(Ignore income taxes in this problem.) Chee Corporation has gathered the following data on a proposed investment project:

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

-The payback period for the investment is closest to:

• A)0.2 years
• B)2.5 years
• C)4.8 years
• D)5.0 years

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Definitions:

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Unfriendly

Exhibiting hostility or an aloof attitude towards others.

Social Perception

The process of interpreting and understanding the behavior and characteristics of oneself and others in a social context.

Cognition

The act of learning and understanding information by using our thoughts, experiences, and sensory inputs.