Use the Information for the Question(s)below

question 29

Multiple Choice

Use the information for the question(s) below.
Kinston Industries has come up with a new mountain bike prototype and is ready to go ahead with pilot production and test marketing.The pilot production and test marketing phase will last for one year and cost $500,000.Your management team believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike.If the test-marketing phase is successful,then Kinston Industries will invest $3 million in year one to build a plant that will generate expected annual after-tax cash flows of $400,000 in perpetuity beginning in year two.If the test marketing is not successful,Kinston can still go ahead and build the new plant,but the expected annual after-tax cash flows would be only $200,000 in perpetuity beginning in year two.Kinston has the option to stop the project at any time and sell the prototype mountain bike to an overseas competitor for $300,000.Kinston's cost of capital is 10%.
-Assuming that Kinston has the ability to sell the prototype in year one for $300,000,the NPV of the Kinston Industries Mountain Bike Project is closest to:

• A)$90,000.
• B)$590,000.
• C)$455,000.
• D)-$45,000.

Differentiate between behavior and mental processes in psychology.

Recognize key historical figures and their contributions to psychology.

Distinguish between the early schools of thought in psychology: structuralism and functionalism.

Identify the contemporary approaches and their focus within psychology.

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Definitions:

Richest Media

Communication channels that provide the highest level of richness in information, often involving immediate feedback and personal engagement.

Workers

Individuals employed to perform tasks or services for compensation.

Meetings

Gatherings or assemblies of people, typically working in the same organization, to discuss or act on various topics of common interest.

Effective Teams

Groups of individuals working together cohesively towards a common goal, characterized by clear communication, mutual respect, and collaborative problem-solving.