The Following Data Is Available for an Investment Object $\bullet$ Acquisition Cost: 60,000

question 40

Multiple Choice

The following data is available for an investment object: $\bullet$ Acquisition cost: 60,000
$\bullet$ Operating cash flows: 20,000 in year 1; 30,000 in year 2; 35,000 in year 3.
Using the NPV model with a discount rate of 10%, which of the following is true?

• A) If the investment is realized, a positive NPV of approximately 9,300 can be achieved.
• B) If the investment is realized, a negative NPV of approximately 9,300 can be achieved.
• C) If the investment is realized, a negative NPV of approximately 25,000 can be achieved.
• D) If the investment is realized, a positive NPV of approximately 25,000 can be achieved.

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for relaxation and conserving energy by slowing the heart rate and increasing intestinal and gland activity.

Gamma-Aminobutyric Acid (GABA)

An inhibitory neurotransmitter in the brain that helps regulate nerve cell activity and is involved in reducing excitability.

Sensory Perceptual Alterations

Changes or disturbances in the way an individual perceives sensory inputs, which can be a symptom of various neurological or psychological conditions.

Circadian Rhythms

Natural, internal processes that regulate the sleep-wake cycle and repeat roughly every 24 hours.