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:

Cerebellum

The part of the brain at the back of the skull in vertebrates, responsible for coordinating and regulating muscular activity.

Flashbulb Memory

The memory of emotionally significant events that people often recall with more accuracy and vivid imagery than everyday events.

Implicit Memory

Memory that influences thoughts and behaviors without conscious awareness, including skills and procedures learned through experience.

Serial Position Effect

The tendency to recall the items at the beginning and end of a list more readily than those in the middle.