You Would Like to Invest in the Following Project

question 90

Multiple Choice

You would like to invest in the following project. Victoria, your boss, insists that only projects that can return at least $1.10 in today's dollars for every $1 invested can be accepted. She also insists on applying a 10 percent discount rate to all cash
flows. Based on these criteria, you should:

• A) Accept the project because it returns almost $1.22 for every $1 invested.
• B) Accept the project because it has a positive PI.
• C) Accept the project because the NPV is $2,851.
• D) Reject the project because the PI is 1.05.
• E) Reject the project because the IRR exceeds 10 percent.

Identify circumstances under which an agent is personally liable for contracts and torts.

Understand the doctrine of respondeat superior and its application to employer liability.

Distinguish between disclosed, partially disclosed, and undisclosed principals and the legal implications of each status.

Comprehend the effects of termination of agency on the authority and liability of the agent.

---

Definitions:

Acculturation

The process by which individuals adapt to and adopt elements of a different culture, often through exposure or migration.

Cultural Modification

The process by which an individual's or group's culture changes due to contact with other cultures, technologies, or ideas.

Hypertension

A condition where the force of the blood against the artery walls is too high, often leading to health issues such as heart disease.

Prejudice and Discrimination

Biased attitudes towards individuals or groups based on preconceived notions and unfair treatment stemming from those biases.