Story Company Is Investing in a Giant Crane

question 21

Multiple Choice

Story Company is investing in a giant crane. It is expected to cost $6 million in initial investment, and it is expected to generate an end-of-year after-tax cash flow of $3 million each year for three years. Calculate the NPV at 12 percent.

• A)$2.40 million
• B)$1.20 million
• C)$0.80 million
• D)$0.20 million

Understand the concept of Hardy-Weinberg equilibrium and its assumptions.

Recognize the effects of inbreeding on genetic diversity.

Identify different evolutionary forces and their impacts on allele frequencies.

Explain the concepts of genetic drift, the founder effect, and bottlenecks.

---

Definitions:

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

Uncompensated Impact

Uncompensated impact refers to effects borne by parties who are not directly involved in a transaction or activity and are not compensated for their losses.

Well-Being

The state of being comfortable, healthy, or happy, often considered in a broad perspective including physical, psychological, and social aspects.

Externalities

Externalities are effects of a transaction that are experienced by someone who is not directly involved in the transaction, either positively (positive externalities) or negatively (negative externalities).