Suppose a Program Costs $100 with No Benefits in Year

question 2

Multiple Choice

Suppose a program costs $100 with no benefits in year 0 and has net benefits of $40 for the next three years.With a discount rate of 6%, what is the program's present value?

• A)$6.92
• B)$20
• C)$27.20
• D)$13.21

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Definitions:

Migraine Headaches

A type of headache characterized by intense, throbbing pain usually on one side of the head, often accompanied by nausea, vomiting, and sensitivity to light and sound.

Narrowing

The process of reducing or limiting the scope or breadth of something.

Expansion

The process of increasing in size, volume, quantity, or scope.

Very Sleepy

A state of experiencing extreme tiredness or drowsiness, often implying a need for rest or sleep.