What Is the Present Worth of an Independent Project That

question 26

Multiple Choice

What is the present worth of an independent project that requires initial investment of $50 000 and annual maintenance costs of $4 000 for 10 years at a 4% minimum acceptable rate of return?

• A)-$4 000
• B)-$32 444
• C)-$54 000
• D)-$82 444
• E)-$17 556

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Definitions:

Extinction

Extinction refers to the process in behavioral psychology where a conditioned response decreases in frequency and eventually disappears when the reinforcement stops.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without any learning needed.

Fear Reaction

The immediate response to a perceived threat, involving physiological changes that prepare the body to either fight or flee.

Stimulus Generalisation

The process by which a conditioned response (CR) starts occurring in response to stimuli that are similar, but not identical, to the original conditioned stimulus (CS).