A Project with an Initial Investment of $70,000 and a Profitability

question 134

Multiple Choice

A project with an initial investment of $70,000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is

• A) $78,400.
• B) $86,730.
• C) $56,497.
• D) $70,000.

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Definitions:

Altruism

The selfless concern for the well-being of others, often leading to actions for their benefit without personal gain.

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, leading to uninhibited and impulsive behavior, often in group settings.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present, often due to the diffusion of responsibility.

Just-world Phenomenon

The belief that the world is fundamentally fair, leading people to rationalize an unjust situation as deserved by the victim.