You Are Offered an Investment Opportunity in Which You Will

question 87

Multiple Choice

You are offered an investment opportunity in which you will receive $23,750 today in exchange for paying $25,000 in one year.Suppose the risk-free interest rate is 6% per year.Should you take this project? The NPV for this project is closest to:

• A)Yes;NPV = $165
• B)No;NPV = $165
• C)Yes;NPV = -$165
• D)No;NPV = -$165

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Definitions:

Management And Labor

The dynamic relationship and interactions between the administrative or executive levels of an organization (management) and the employees or workforce (labor).

External Theories

Ideas or explanations originating outside an organization or individual, used to understand phenomena or guide actions in various domains.

Motivation

The process of arousing and sustaining goal-directed behavior.

Adams's Theory

Refers to the Equity Theory of motivation created by John Stacey Adams, which suggests that employees are motivated or demotivated based on their perception of fairness in the workplace.