What Is the NPV for the Following Project Cash Flows

question 72

Multiple Choice

What is the NPV for the following project cash flows at a discount rate of 15%? C₀ = −$1,000,C₁ = $700,C₂ = $700.

• A) ($308.70)
• B) ($138.00)
• C) $138.00
• D) $308.70

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Definitions:

Maintenance Rehearsal

Rote repetition of material in order to maintain its availability in memory.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Amygdala

A part of the brain's limbic system involved in emotion, particularly fear and pleasure.

Frontal Lobes

Lobes at the front of the brain’s cerebral cortex; they contain areas involved in short-term memory, higher-order thinking, initiative, social judgment, and (in the left lobe, typically) speech production.