Table 11.7 A Corporation Is Assessing the Risk of Two Capital Budgeting

question 166

Multiple Choice

Table 11.7
A corporation is assessing the risk of two capital budgeting proposals. The financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows which are given in the following table. The firm's cost of capital is 10 percent.
-The expected net present value of project A if the outcomes are equally probable and the project has five-year life is ________. (See Table 11.7)

• A) -$1,045
• B) $17,910
• C) $36,865
• D) $93,730

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Definitions:

Non-Suicidal Self-Harm

Intentional self-inflicted injury without the intent to commit suicide, often as a coping mechanism for emotional pain.

Adolescents

Individuals in the developmental stage between childhood and adulthood, typically considered to be between ages 10 and 19.

Cutting

A self-harm behavior involving deliberate injury to one's skin with a sharp object, often as a way to cope with emotional distress or psychological pain.

Adaptive Mechanisms

Psychological strategies that individuals use to cope with stress and maintain emotional well-being.