Stacy Is Contemplating Investing $10,000 in a Gizmo Machine

question 83

Multiple Choice

Stacy is contemplating investing $10,000 in a gizmo machine. The investment is expected to yield $4,000 at the end of each of the next three years. The interest rate is 5 percent. What is the net present value of the expected revenues from the investment?

• A) $8,426
• B) $9,947
• C) $10,893
• D) $12,000

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Definitions:

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is known as the father of scientific management.

Worker's Productivity

The efficiency and effectiveness with which an employee performs tasks, contributing to the goals and success of an organization.

Self-evaluation Traps

Psychological patterns where individuals assess themselves in a overly critical or negative way, hampering personal growth and satisfaction.

Perceptions

The way individuals interpret their sensory information, thereby understanding their environment and social interactions.