A Project You Are Considering Is Expected to Provide Benefits

question 67

Multiple Choice

A project you are considering is expected to provide benefits worth $225,000 in one year.If the risk-free rate of interest (r_f) is 8%,then the value of the benefits of this project today are closest to:

• A)$190,333
• B)$208,333
• C)$225,000
• D)$243,000

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Definitions:

Indirect Effects

Outcomes that are not directly caused by an action but occur as a secondary or subsequent result of it.

Goals Motivate

The concept that setting and striving for objectives can drive individuals or teams to improve their performance and achieve success.

Goal-Setting Theory

A psychological theory that suggests setting specific and challenging goals enhances motivation and performance.

Clear, Well-Defined Goals

Specific, articulate objectives that are straightforward to understand and aim to achieve.