Read the Following Scenario and Answer the Question Below

question 46

Multiple Choice

Read the following scenario and answer the question below.
A military base a few miles from a medium-sized city is being decommissioned. The base is a large one, sited along a coastline, and includes some small hills, pristine woodlands and wetlands, streams, a river, and a small lake. There is a railroad spur that connects the base with the nearby city, as well as a four -lane highway. The base contains housing, schools, a hospital, shops, and recreational areas for a population of 10,000. The cityʹs options for using, selling, or leasing the land are numerous, and many groups come forward with proposals.
-As an ecological resource manager, your preliminary environmental studies should include inquiry into whether _______________.

• A) the financial situation of some potential investors is shaky
• B) the wetlands include oyster beds and shallow estuaries that are habitats for shrimp, crabs, and fish which are supporting many local industries
• C) the city needs to obtain a great deal of revenue from the final choice
• D) the lake should be provided with docks and a marina for sport fishermen
• E) a new housing development just outside the city limits may increase traffic on the connecting highway

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Definitions:

Discounting

The process of determining the present value of a future amount of money or stream of income.

Payback Period

The length of time it takes to recover the cost of an investment.

Net Present Value

A method used to evaluate the profitability of an investment or project, calculated by discounting future cash flows to their present value.

Rate of Return

The increase or decrease in value of an investment during a set timeframe, shown as a percent of the investment's original price.