Compute the PI Statistic for Project Z and Advise the Firm

question 17

Multiple Choice

Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. Project Z

• A) The project's PI is 8.48% and the project should be accepted.
• B) The project's PI is 8.48% and the project should be rejected.
• C) The project's PI is 16.48% and the project should be accepted.
• D) The project's PI is 21.48% and the project should be accepteD.Step 1: Find NPV using financial calculator: NPV = 214.78; Step 2: 214.78/1000 = 21.48% and since PI>0 accept.

Learn about the disequilibrium principle and its application to behavior reinforcement.

Analyze how the conditions and consequences of actions affect behavior through classical and operant conditioning.

Differentiate between classical and operant conditioning based on the contingencies of reinforcement.

Recognize the effects of punishment and how its effectiveness can be influenced by various factors.

---

Definitions:

Hans Selye

A pioneering Hungarian-Canadian endocrinologist known for his research on the stress response and the concept of the General Adaptation Syndrome.

Stress Physiology

The biological processes and changes in the body that occur in response to stress, involving the nervous and endocrine systems.

Biofeedback

A technique that teaches individuals to control physiological functions by providing real-time feedback on biological data.

Comparative Psychology

The scientific study of the behavior and mental processes of non-human animals, often in comparison to humans, to understand evolutionary and developmental principles.