Cheryl Peck Purchased a Computer Network for Her Classroom

question 82

Multiple Choice

Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 16 percent, what is the approximate net present value?

• A) $19,156
• B) $22,881
• C) $35,471
• D) $87,500

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Definitions:

Cerebral Cortex

The outer layer of the cerebrum, involved in various high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.

Oriented

The state of being aware of one's own personal identity, place, time, and situation as a measure of cognitive function.

Cerebellum

A part of the brain located at the back of the skull, vital for coordinating movement and balance.

Nystagmus

Involuntary, rapid and repetitive movement of the eyes, which can be horizontal, vertical, or rotary.