Scenario 15.6: Consider the Following Decision That Eileen Has to Make

question 93

Multiple Choice

Scenario 15.6:
Consider the following decision that Eileen has to make:
Eileen is considering buying a $4000 computer for her daughter. Eileen hopes that with the computer her daughter's schoolwork will improve so much that in two years time she will be offered a full-ride scholarship to college. The scholarship is paid for four years and is valued at $25,000 per year. Even with the computer the probability that the scholarship will be awarded is 10%.
-Refer to Scenario 15.6. The expected NPV of the computer purchase is approximately:

• A) $3,200.
• B) $5000.
• C) $10,000.
• D) $68,000.
• E) $96,000.

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Definitions:

Nitrogen

A chemical element with symbol N and atomic number 7, essential for life and a major component of the Earth's atmosphere.

Electron Configuration

The arrangement of electrons within the orbitals of atoms or molecules.

Phosphorus

A highly reactive, nonmetallic element essential for life, used in fertilizers, detergents, and many other products.

Lewis Structure

A diagram that represents the valence electrons of atoms within a molecule, indicating how these electrons are arranged in bonds between atoms and lone pairs.