Consider a Project That Would Change the Way Your Company

question 40

Multiple Choice

Consider a project that would change the way your company is doing business.Investing $100,000 would save your company $10,000 a year forever.Calculate the NPV of this project if the risk-adjusted rate is 10%.

• A) $10,000
• B) $100,000
• C) $0
• D) $ −90,000

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Definitions:

Cognitive Psychologists

Professionals who study mental processes including how people think, perceive, remember, and learn.

Short-Term Memory

A limited-capacity memory system capable of briefly storing information for a short period before it is forgotten or transferred to long-term memory.

Short-Term Memory

The part of the memory system that temporarily holds a limited amount of information for a brief period.