A Firm Is Considering an Investment Project That Today Would

question 88

Multiple Choice

A firm is considering an investment project that today would cost $20,000. At the end of one year, there is a 70% probability that the investment will pay out $28,000 and a 30% probability that it will pay out $16,000. Using a 10% interest rate, what is the expected net present value of this investment?

• A) -$670.85
• B) $483.14
• C) $2,181.82
• D) $4,020.19

Revise sentences to improve clarity, respectfulness, and effectiveness in business communication.

Understand the concept and roles of coalitions within policy advocacy.

Recognize the strategies and preparations for effectively interacting with legislators.

Identify factors that influence the acceptance of policy proposals within agencies.

---

Definitions:

Aversion Therapy

A behavioral treatment method that involves pairing an undesirable behavior with an unpleasant stimulus to reduce the behavior's occurrence.

ECT

Electroconvulsive Therapy, a psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of certain psychiatric drugs.

Behaviour Therapies

Psychological treatments that focus on changing maladaptive patterns of behavior through learning principles.