Story Company Is Investing in a Giant Crane

question 21

Multiple Choice

Story Company is investing in a giant crane. It is expected to cost $6 million in initial investment, and it is expected to generate an end-of-year after-tax cash flow of $3 million each year for three years. Calculate the NPV at 12 percent.

• A)$2.40 million
• B)$1.20 million
• C)$0.80 million
• D)$0.20 million

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Definitions:

Piaget

A Swiss psychologist known for his pioneering work in child development, focusing on how children learn and adapt to their environment through stages.

Infants

Very young children, typically under the age of one year, who are in the earliest stages of physical and cognitive development.

Psycholinguistic Theory

The view that language learning involves an interaction between environmental influences and an inborn tendency to acquire language.

Language Acquisition

The process by which humans acquire the capacity to perceive, produce, and use words to understand and communicate.