Suppose Your Firm Is Considering Investing in a Project with the Cash

question 70

Multiple Choice

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. Use the PI decision to evaluate this project; should it be accepted or rejected? $$\begin{array} { | l | l | l | l | l | l | l | l | } \hline \text { Time } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \begin{array} { l } \text { Cash } \\\text { Flow }\end{array} & - \$ 5,000 & \$ 1,200 & \$ 1,400 & \$ 1,600 & \$ 1,600 & \$ 1,100 & \$ 2,000 \\\hline\end{array}$$

• A)PI = 6.94 percent; reject the project
• B)PI = 7.52 percent; reject the project
• C)PI = 23.61 percent; accept the project
• D)PI = 35.33 percent; accept the project

Differentiate between operant and respondent behaviors.

Identify the types and effects of reinforcers in learning processes.

Comprehend the methodology and applications of shaping in behavior modification.

Recognize the role of discriminative stimuli in operant conditioning.

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A tax levied on specific goods, services, or transactions, often to discourage their use or generate revenue.

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The remuneration received by individuals employed by the government, including wages, benefits, and allowances.

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A tax levied by local governments on real estate properties, based on the assessed value of the property, to fund public services like education and infrastructure.

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Regular payments made by the government to support individuals who are retired, disabled, or otherwise entitled to receive such benefits according to social welfare programs.