A Firm Is Considering a Project Requiring an Investment of $27,000

question 170

Multiple Choice

A firm is considering a project requiring an investment of $27,000. The project would generate an annual cash flow of $6,296 for the next seven years. The company uses the straight-line method of depreciation. The approximate internal rate of return for the project is

• A) 6%.
• B) 8%.
• C) 12%.
• D) 14%.

---

Definitions:

Behavior-Focused

An approach that emphasizes modifying observable and measurable behaviors as a method to address psychological issues.

Humanistic-Existential

An approach in psychology that emphasizes the individual's inherent value and the importance of personal growth and understanding one's existence.

Positive Psychology

The study and enhancement of positive feelings, traits, and abilities.

Model of Abnormality

An overarching theoretical framework that attempts to explain the causes of mental disorders and guides treatment interventions.