A Project Under Consideration Currently Has a Negative Net Present

question 4

Multiple Choice

A project under consideration currently has a negative net present value of $11,600 using a 6% rate of return and an estimated 4-year life.What must be the minimum present value of the soft benefits of this project in order to make it acceptable? (Round the answer to nearest whole dollar.)

• A)$12,296
• B)$40,195
• C)$9,188
• D)$3,348

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Definitions:

Tension

A psychological state or physical condition resulting from the conflict between internal needs and external forces, often leading to stress.

Drive Theory

A psychological concept suggesting that motivation arises from biological drives that propel an organism to satisfy its needs.

Physiological Equilibrium

The state of internal, physical, and chemical balance maintained by living systems.

Drive Reduction

A motivational theory that suggests behavior is motivated by the desire to reduce internal drives caused by unmet physiological needs, aiming to return to a state of homeostasis.