The Commerce Company Is Evaluating a Project with the Following

question 92

Multiple Choice

The Commerce Company is evaluating a project with the following cash flows:

-What is the net present value of the proposed Commerce Company project if the discount rate is 7%?

• A) $10,000
• B) $9,347
• C) $6,921
• D) $5,847

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Definitions:

Fixed-Ratio Schedule

A reinforcement strategy in behaviorism where a response is reinforced only after a specified number of responses.

Reinforcement

In behavioral psychology, a process by which a behavior becomes more likely to occur because it is followed by a reward or the removal of an unpleasant stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period without exposure to the conditioned stimulus.

Conditioned Stimulus

An initially neutral trigger that, after being paired with an unconditioned stimulus, in time invokes a conditioned response.