Lithium,Inc

question 46

Multiple Choice

Lithium,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Lithium,Inc.'s required rate of return for these projects is 10%.The equivalent annual annuity amount for project A is

• A) $12,989.
• B) $13,357.
• C) $15,024.
• D) $18,532.

---

Definitions:

Compliant

Showing a willingness to follow rules or orders; agreeable to guidelines or requests.

Need For Affection

A psychological drive that compels individuals to seek out closeness and interpersonal warmth.

Therapist-Client Relationship

The professional and therapeutic relationship established between a mental health professional and their client, fundamental to effective therapy.

Ego And Id

Fundamental concepts in psychoanalytic theory describing the interplay between the conscious self (ego) and the unconscious desires (id).