Reference: 10-01
Shields Company Has Gathered the Following Data on a Proposed

question 27

Multiple Choice

Reference: 10-01
Shields Company has gathered the following data on a proposed investment project: $$\begin{array} { | l | l | } \hline \text { Investment required in equipment } & \$ 400,000 \\\hline \text { Annual cash inflows } & \$ 80,000 \\\hline \text { Salvage value } & \$ \quad 0 \\\hline \text { Life of the investment } & 10 \text { years } \\\hline \text { Discount rate } & 10 \% \\\hline\end{array}$$
-The net present value on this investment is closest to:

• A)$76,750.
• B)$400,000.
• C)$91,600.
• D)$80,000.

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Definitions:

Self-actualization

The process of realizing and fulfilling one's potential and capabilities, representing the pinnacle of psychological development.

Conscious Experience

The awareness of one's own internally and externally directed perceptions, thoughts, and feelings.

Physiological Arousal

Physical states of alertness and activation resulting from activation of the central nervous system, often in response to stimuli.

Parasympathetic Nervous System

The part of the autonomic nervous system that calms the body.