A Project You Are Considering Is Expected to Provide Benefits

question 14

Multiple Choice

A project you are considering is expected to provide benefits worth $225,000 in one year.If the risk-free rate of interest (rf) is 8%,then the value of the benefits of this project today are closest to:

• A)$190,333.
• B)$208,333.
• C)$225,000.
• D)$243,000.

---

Definitions:

Gustation

The sense of taste or the act of tasting.

Audition

The sense or act of hearing.

Olfaction

The sense of smell, a chemical sense that detects airborne molecules and contributes to taste and environmental awareness.

Cochlear Hair Cells

Sensory cells located in the cochlea of the ear; they are essential for converting sound vibrations into electrical signals for the brain to interpret as sound.