A Project Has an Anticipated Stream of Annual Net Receipts

question 53

Multiple Choice

A project has an anticipated stream of annual net receipts of $25,000. Its life is 10 years. No salvage value is expected at the end of the 10 years. Compute the net present value of the project, if its price is $150,000 and the applicable discount rate is 8%.

• A) -138,420.00
• B) -96,027.50
• C) 17,752.50
• D) 162,187.50
• E) 167,752.50

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Definitions:

Identity Achievement

Describes the stage in psychosocial development where an individual has explored various options and commitments, leading to a secure sense of self.

Marcia

A reference to James Marcia's theory on identity status, addressing the processes of exploration and decision making that lead to various identity outcomes in adolescence.

Erikson

Erik Erikson, a German-American developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, including the concept of identity crisis.

Autonomy versus Shame and Doubt

A stage in Erik Erikson's theory of psychosocial development where toddlers learn to exercise will and do things independently, leading to a sense of autonomy, or they doubt their abilities, leading to feelings of shame and doubt.