Millie Is Risk Manager of JKL Company

question 24

Multiple Choice

Millie is risk manager of JKL Company.She is considering an investment in a loss control project.The project will cost $40,000.Assuming a 10 percent discount rate,the present value of the future cash flows that this project will generate is $60,000.What is the net present value (NPV) of this project?

• A)$20,000
• B)$26,000
• C)$60,000
• D)$100,000

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Definitions:

Momentum Effect

The phenomenon where the movement (either upwards or downwards) of a stock price or market trend tends to continue for a period of time.

Reputational Capital

The value of a company or individual's reputation, built over time, which can affect stakeholders' decisions and perceptions, impacting financial and strategic outcomes.

Computer-Mediated

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Virtual Reality

A simulated experience created with computer technology, which can mimic or create different environments for users.