A Logging Company Is Considering Logging an Area for a Current

question 144

Multiple Choice

A logging company is considering logging an area for a current cost of $500 per acre to obtain a profit the next year of $600 per acre. The market rate of interest is 10 percent. Should the company make the investment?

• A)Yes, the future value of the profit is greater than the present value of the cost.
• B)No, the future value of the profit is less than the present value of the cost.
• C)Yes, the present value of the profit is greater than the present value of the cost.
• D)No, the present value of the profit is less than the present value of the cost.

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Definitions:

Median cubital

Referring to the median cubital vein, a prominent vein located in the cubital fossa of the arm, commonly used for venipuncture.

Cephalic veins

Superficial veins located in the lateral aspect of the arm, often used for intravenous access or blood drawing.

Povidone-iodine

An antiseptic used for skin disinfection before and after surgery and for the treatment of minor wounds.

Alcohol

A chemical substance found in drinks like beer, wine, and spirits, which can alter consciousness and often has intoxicating effects.