Figure 14-7

question 11

Multiple Choice

Figure 14-7. Osler Company is considering an investment with the following data:
Depreciation will be taken on a straight-line basis over the expected life of the investment.
Refer to Figure 14-7.The company requires a minimum rate of return of 4%.What is the net present value of the investment?

• A)$2,775
• B)$202,775
• C)$118,170
• D)($81,830)

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Definitions:

Minimize

To reduce something to the least possible amount or degree.

Dissonance

A state of conflict or inconsistency between a person's beliefs, attitudes, or actions, often leading to discomfort and change.

Cognitive Dissonance

A psychological phenomenon in which an individual experiences discomfort or distress from holding two or more contradictory beliefs, ideas, or values at the same time.

Opinions

Personal views, beliefs, or judgments that may not be based on fact or knowledge.