Use the Figure for the Question(s) Below

question 77

Multiple Choice

Use the figure for the question(s) below.

-A consumer good company is developing a new brand of organic toothpaste. Above is the sensitivity analysis for this product. If the best-case assumptions for Net Working Capital are met, what will the net present value (NPV) of this project be?

• A) $2 million
• B) $3 million
• C) $0.65 million
• D) $1.7 million

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Definitions:

Systematic Desensitization

A behavioral therapy technique aimed at reducing phobic or anxiety responses through gradual exposure to the feared object or situation.

Phobic Cues

Specific stimuli that trigger an intense fear or phobia in an individual.

Deep Muscle Relaxation

A technique aimed at reducing physical tension and stress by systematically tensing and then relaxing specific muscle groups.

Cognitive Therapy

A form of psychological therapy that focuses on changing unhelpful or unhealthy thought patterns to improve emotional and mental health.