Cardinal Inc

question 76

Multiple Choice

Cardinal Inc.purchased an asset costing $25 000.Annual operating cash inflows generated from the asset are expected to be $6595 each year for five years.No salvage value is expected at the end of the asset's life.Using time value of money tables,which of the following rates is closest to the internal rate of return on the project?

• A) 4 per cent
• B) 26 per cent
• C) 10 per cent
• D) 32 per cent

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Definitions:

Overgeneralizing

A mental bias characterized by making extensive, general assumptions from one occurrence or bit of data.

Dichotomous Thinking

A cognitive distortion involving seeing things in black and white, or all-or-nothing terms, lacking shades of gray.

Overgeneralization

A cognitive distortion where a person draws broad, generalized conclusions from a single or few incidents, often leading to negative thinking and outcomes.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that focuses on identifying and changing irrational beliefs that cause emotional distress.