A Project Has an Anticipated Stream of Annual Net Receipts

question 46

Essay

A project has an anticipated stream of annual net receipts of $20,000. Its life is 6 years. No salvage value is expected at the end of the 6 years. Compute the net present value of the project, if its price is $80,000 and the applicable discount rate is 8%.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Counterconditioning

A behavioral therapy technique that involves teaching the patient to associate a positive response with a stimulus that previously elicited a negative response.

CS

Stands for "Conditioned Stimulus," which is a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Intero-Exteroceptive Conditioning

a form of conditioning that involves the learning process of associating internal physiological states with external stimuli.