Use the Information for the Question(s) Below

question 12

Multiple Choice

Use the information for the question(s) below.
-The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. At what discount rate does her decision to renovate become untenable?

• A) 3.0%
• B) 3.3%
• C) 4.0%
• D) 4.8%

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Definitions:

Reps

Short for repetitions, the number of times an exercise movement is performed in a set during strength training.

Voluntary Muscles

Muscles whose movement can be consciously controlled by the individual, involved in activities such as walking or talking.

Involuntary Muscles

Muscles that operate without conscious control, responsible for functions such as breathing and digestion.

FITT

An acronym for Frequency, Intensity, Time, and Type, a principle used to guide the development of physical fitness programs.