A Proposed Project Requires an Initial Cash Outlay of $75,000

question 51

Multiple Choice

A proposed project requires an initial cash outlay of $75,000 for equipment and an additional cash outlay of $25,000 in Year 1 to cover operating costs.During Years 2 through 4, the project will generate cash inflows of $50,000 a year.What is the net present value of this project at a discount rate of 12.2 percent?

• A)$9,385.06
• B)$9,432.42
• C)$8,851.67
• D)$7,441.33
• E)$ $53,948.34

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Definitions:

Third Wave

Describes the third generation of behavioral and cognitive psychotherapies that incorporate mindfulness and acceptance strategies, aiming at greater psychological flexibility.

Standard CBT

Cognitive Behavioral Therapy that follows established protocols to address and modify dysfunctional emotions, behaviors, and thoughts.

Acceptance

The process or act of receiving or acknowledging something as valid, true, or suitable, often used in the context of psychological well-being and social interactions.

Cognitive Distancing

The practice of observing one's thoughts and beliefs as temporary, rather than accurate reflections of reality, allowing for a more objective and less emotional response.