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

Understand the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on financial services industry responsibility.

Recognize the foundational principles of business ethics initiatives like the Defense Industry Initiative.

Evaluate the influence of personal values from family, religion, and school on business decision-making.

Describe the societal and legislative reactions to unethical business actions.

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Definitions:

Hypothetical Syllogism

A form of logical argument where two conditional statements lead to a conclusion if the first condition is true, then the conclusion follows.

Modus Ponens

A form of logical argument that concludes a certain consequent from a single premise in the form "If P, then Q" and P, therefore Q.

Modus Tollens

A form of deductive argument in logic that, if the implication is true, then denies the consequent to conclude the denial of the antecedent.

Proposition

A declarative sentence that can be evaluated as true or false, conveying a statement or assertion.