Consider a Project That Requires an Investment of $28,000 Today

question 95

Multiple Choice

Consider a project that requires an investment of $28,000 today and generates after-tax cash flows of $10,000 per year for the next four years.The appropriate discount rate is 15%.What are the NPV and IRR for this investment?

• A)NPV = -$264; IRR = 14.85%
• B)NPV = $336; IRR = 15.34%
• C)NPV = $550; IRR = 15.97%
• D)NPV = $738; IRR = 16.13%

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Definitions:

Negative Reinforcement

The strengthening of a behavior by removing or avoiding a negative outcome or aversive stimulus.

Positive Reinforcement

The addition of a pleasant stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Tertiary Reinforcement

A type of reinforcement that uses a stimulus indirectly linked to a primary or secondary reinforcer to modify behavior, such as money or tokens.

Conditional Reinforcement

The process by which stimuli that are associated with a primary reinforcer also become reinforcers themselves, often through classical conditioning.