A Security Firm Is Offered $80,000 in One Year for Providing

question 4

Multiple Choice

A security firm is offered $80,000 in one year for providing CCTV coverage of a property. The cost of providing this coverage to the security firm is $74,000, payable now, and the interest rate is 8.5%. Should the firm take the contract?

• A) Yes, since net present value (NPV) is negative.
• B) It does not matter whether the contract is taken or not, since NPV = 0.
• C) No, since net present value (NPV) is negative.
• D) Yes, since net present value (NPV) is positive.

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Definitions:

Intellectual Functioning

A term referring to the cognitive capabilities of an individual, including reasoning, problem-solving, planning, abstract thinking, comprehension, and learning.

Extrafamilial

Pertaining to influences, relationships, or activities that occur outside of the family environment.

Resilient

The ability of an individual to recover quickly from difficulties or adapt to challenging situations with flexibility.

Historical Factors

Elements or circumstances from the past that influence present conditions or situations.