​A Publisher Is Deciding Whether or Not to Invest in a New

question 28

Multiple Choice

​A publisher is deciding whether or not to invest in a new printer.The printer would cost $900,and would increase the cash flows in year 1 by $500 and in year 3 by $800.Cash flows do not change in year 2.If the interest rate is 12%,what is the present value of the cash flows from the investment?

• A)​$155.59
• B)$1015.85
• C)$1076.56
• D)​$346.78

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Definitions:

Insanity

A legal term describing a person's inability to determine right from wrong or to form a rational decision.

Suicide Attempt

An act whereby an individual intentionally tries to end their own life but does not result in death.

Lethal Means

Methods or devices that are capable of causing death.

Suicide Rate

Suicide rate is a statistical measure that reflects the number of suicides occurring in a given population during a specified period of time.