Scott Enterprises Is Considering a Project That Has the Following

question 55

Multiple Choice

Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data.What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. $$\begin{array} { l c c c c c } \mathrm { r } : & 11.00 \% \\\text { Year } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash flows } & - \$ 1,000 & \$ 350 & \$ 350 & \$ 350 & \$ 350\end{array}$$

• A) $77.49
• B) $81.56
• C) $85.86
• D) $90.15
• E) $94.66

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Definitions:

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, demonstrating the willingness of participants to obey an authority figure's instructions to perform acts conflicting with their personal conscience.

Obedience to Authority

A form of social influence where an individual complies with orders from an authority figure.

Subjects

Individuals or entities being studied or observed in a research project or experiment.

Milgram's Experiment

Stanley Milgram's social psychology experiments assessed how likely individuals were to follow orders from an authoritative figure, even when these orders went against their own moral beliefs.