You Are Analyzing a Very Low-Risk Project with an Initial $\le$

question 109

Multiple Choice

You are analyzing a very low-risk project with an initial cost of $\le$ 120,000. The project is expected to return $\le$ 40,000 the first year, $\le$ 50,000 the second year and $\le$ 60,000 the third and final year. The current spot rate is $\le$ .54. The nominal return relevant to the project is 4 % in the U.K. and 3 % in Canada. Assume that uncovered interest rate parity exists. What is the net present value of this project in dollars?

• A) $33,232
• B) $34,040
• C) $34,067
• D) $34,422
• E) $35,009

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Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.

Perfectionistic

A personality trait characterized by striving for flawlessness and setting excessively high performance standards.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility and efficiency.

Obsessions

Uncontrollable, persistent thoughts, images, ideas, or impulses that an individual feels intrude on his or her consciousness and that cause significant anxiety or distress.