The Cost of Capital for a New Project Is $55,000

question 105

Multiple Choice

The cost of capital for a new project is $55,000. The project is expected to yield $20,000 in year one and $40,000 in year two. What is the approximate rate of return over this period?

• A) 5.4%
• B) 10.8%
• C) 2.7%
• D) 7.4%

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Definitions:

Behavior Therapist

A professional who uses principles of learning and conditioning to treat psychological disorders and improve behavior.

Psychotherapy

A therapeutic treatment approach involving psychological methods, particularly when based on regular personal interaction to help a person change behavior and overcome problems in desired ways.

Transference

denotes the redirection of a patient's feelings for a significant person to the therapist, often observed in psychoanalytic therapy.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.