Carl Is Unsure of Which Rate He Should Use as a Discount

question 23

Multiple Choice

Carl is unsure of which rate he should use as a discount rate for project evaluations, 7 percent or 10 percent.If he can invest $30,000 in a project that will return $40,000 after-tax in four years, what is the result?

• A)He will always reject the project
• B)He will reject the project if he uses 10%
• C)He will reject the project if he uses 7%
• D)He will reject neither project

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Definitions:

Group Setting

The physical or social context in which a group operates or interacts.

Counseled

Provided professional guidance in resolving personal or psychological problems.

Leader

An individual who guides or directs a group towards achieving goals through influencing, motivating, and providing direction.

Cognitive-behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, commonly used to treat a variety of disorders.