A Company Facing an Interest Rate of 8% Must Choose

question 41

Multiple Choice

A company facing an interest rate of 8% must choose among projects offering the following four-year cash flows.If the company is employing the net present value criterion,which project should they choose?

• A)$25,000 in year 1;$15,000 in year 2;$10,000 in year 3;and $5,000 in year 4
• B)$5,000 in year 1;$5,000 in year 2;$20,000 in year 3;and $30,000 in year 4
• C)$15,000 in year 1;$15,000 in year 2;$15,000 in year 3;and $15,000 in year 4
• D)$5,000 in year 1;$5,000 in year 2;$25,000 in year 3;and $25,000 in year 4

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Definitions:

White Light

Electromagnetic radiation that is visible to the human eye and is perceived as colorless. It contains all wavelengths of the visible spectrum.

Glissades

Smooth, sliding movements, often associated with ballet or used metaphorically to describe seamless transitions.

End-stopped Neurons

Neurons that become activated or inhibited by specific visual patterns at the end of object borders; however, this term is not widely used in contemporary neuroscience, so the precise definition may vary.

Motor Neurons

Specialized nerve cells responsible for converting electrical impulses into actions, such as muscle movement.