Cheryl Peck Purchased a Computer Network for Her Classroom

question 6

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 12 percent, what is the approximate net present value of her investment?

• A) $35,471
• B) $19,156
• C) $87,500
• D) Cannot tell without more information.

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Definitions:

Genetic Abnormalities

Refers to variations in genes or chromosomes that lead to medical conditions or physical abnormalities.

Schizophrenic Spectrum Disorders

A category of mental health disorders marked by significant disturbances in thought processes, perceptions, emotional responsiveness, and behavior.

Disorganized Speech

A symptom of some psychiatric disorders where spoken language is incoherent and lacks the normal structures of conversation.

Schizophrenia

A chronic brain disorder that affects less than one percent of the U.S. population, characterized by delusions, hallucinations, disorganized speech, and significantly impaired functioning.