Acme,IncIs Considering a Four-Year Project That Has an Initial Outlay

question 72

Multiple Choice

Acme,Inc.is considering a four-year project that has an initial outlay or cost of $100,000.The respective future cash inflows from its project for years 1,2,3 and 4 are: $50,000,$40,000,$30,000 and $20,000.Will it accept the project if it's payback period is 31 months?

• A)Yes,because it pays back in 25 months.
• B)Yes,because it pays back in 28 months.
• C)No,because it pays back in over 31 months.
• D)No,because it pays back in over 35 months.

---

Definitions:

Overweight People

This term refers to individuals having a body weight more than what is considered normal or healthy for a given height, often measured by the Body Mass Index (BMI).

Lexical Decision

A psychological task where participants decide as quickly as possible whether a string of letters is a real word or a non-word, used to investigate processes of word recognition.

Thrifty Gene

A hypothesis suggesting that certain genes make individuals more efficient at food intake and storage, historically advantageous during periods of food scarcity but potentially leading to obesity in societies with abundant food.

Predisposed

Having a tendency or inclination to a specific behavior, action, or disease, often due to genetic or environmental factors.