Figure 14-6.Present Value of $1

question 146

Multiple Choice

Figure 14-6.Present value of $1
Present value of an Annuity of $1

-Refer to Figure 14-6. Morgan Clinical Practice is considering an investment in new imaging equipment that will cost $400,000. The equipment is expected to yield cash inflows of $80,000 per year for a six year period. At the end of the sixth year, the firm expects to recover $150,000 from the sale of the equipment. Morgan set a required rate of return at 10%. What is the net present value of the investment? (Note: there may be a rounding error depending on the table you use to compute your answer. Choose the answer closest to the one you calculate.)

• A) ($33,000)
• B) $45,200
• C) $433,000
• D) $33,000
• E) ($177,280)

Identify different strategies for enhancing academic performance.

Understand sociobiology's perspective on evolved social behaviors and the criticism it faces.

Explain environmental causal factors in mental health conditions such as depression.

Grasp the concept of interaction among various causal factors affecting behavior and mental health.

---

Definitions:

Poverty

A condition where a person or community lacks the financial resources and essentials for a minimum standard of living.

Population Growth

A growth in the population size over a designated time frame.

Death Rates

An index reflecting the total number of fatalities within a specific group, adjusted for its size, over a given period.

Birth Rates

The number of live births per thousand people in a population in a given year.