Your Firm Is Considering a Project with a Five-Year Life

question 40

Multiple Choice

Your firm is considering a project with a five-year life and an initial cost of $260,000. The discount rate for the project is 14 percent. The firm expects to sell 3,600 units a year. The cash flow per unit is $30. The firm will have the option to abandon this project after three years at which time they expect they could sell the project for $150,000. You are interested in knowing how the project will perform if the sales forecast for years four and five of the project are revised such that there is a 60/40 chance that the sales will be either 2,800 or 4,400 units a year, respectively. What is the net present value of this project given your sales forecasts?

• A) $96,141
• B) $114,715
• C) $132,708
• D) $141,414
• E) $155,556

Comprehend the basics of plant genetics and diversity within species.

Understand the principles and processes involved in wastewater treatment, including the removal of oils, grease, and organic matter, and the importance of oxygen in these processes.

Comprehend the methods used for sterilizing water, including the use of ultraviolet light and chlorine.

Recognize the environmental impacts of nitrogen and phosphorous compounds in water bodies and the importance of their removal from wastewater.

---

Definitions:

Quasi-Experiment

An empirical study that resembles an experimental design but does not include random assignment of participants to conditions.

Correlational Research

A method of study that examines the relationship or association between two or more variables without inferring a causal connection.

Archival Data

Information collected and stored in archives, including documents, records, and datasets that are used for research or reference.

External Validity

The extent to which the findings of a study can be generalized to other settings, populations, and times beyond the study conditions.