Please Refer to the Following Data About an Investment Opportunity

question 71

Multiple Choice

Please refer to the following data about an investment opportunity:
$$\begin{array} { | r | r | } \hline \text { Initial investment } & \$ 500,000 \\\hline \text { Discount rate } & 10 \% \\\hline \text { Yearly cash flows } & \\\hline \text { Year } 1 & \$ 100,000 \\\hline \text { Year } 2 & \$ 200,000 \\\hline \text { Year 3 } & \$ 200,000 \\\hline \text { Year 4 } & \$ 200,000 \\\hline \text { Year 5 } & \$ 100,000 \\\hline\end{array}$$
Refer to the following table for PV factors:
$$\begin{array} { | r | r | r | r | r | r | r | } \hline \text { Preant Value of } & & & & & & \\\$1\\\hline &5\%&6\%&7\%&8\%&9\%&10\%\\\hline 1 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.907 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.864 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.823 & 0.79 & 0.763 & 0.735 & 0.708 & 0.683 \\\hline 5 & 0.784 & 0.747 & 0.713 & 0.681 & 0.650 & 0.621 \\\hline 6 & 0.746 & 0.705 & 0.666 & 0.630 & 0.596 & 0.564 \\\hline 7 & 0.711 & 0.665 & 0.623 & 0.583 & 0.547 & 0.513 \\\hline 8 & 0.677 & 0.627 & 0.582 & 0.540 & 0.502 & 0.467 \\\hline 9 & 0.645 & 0.592 & 0.544 & 0.500 & 0.460 & 0.424 \\\hline 10 & 0.614 & 0.558 & 0.508 & 0.463 & 0.422 & 0.386 \\\hline\end{array}$$
How much is the NPV of the project?

• A) $9,500 negative
• B) $94,220 positive
• C) $105,000 positive
• D) $240,000 positive

Identify the role and impact of social support on health outcomes.

Recognize protective and vulnerability factors in coping with stress.

Acknowledge the long-term health effects of stress.

Understand differential impacts of personality types on health.

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Definitions:

Active-Voice Sentence

A sentence structure where the subject performs the action denoted by the verb, emphasizing the doer of the action.

Organizational Framework

The structured and systematic arrangement of parts or elements within an organization that defines roles, responsibilities, and processes.

Structural Device

Tools or mechanisms used in engineering, architecture, or construction to support and give shape to buildings or structures.

Outline

A general description or plan showing the essential features of something but not the detail.