A Security Firm Is Offered $80,000 in One Year for Providing

question 66

Multiple Choice

A security firm is offered $80,000 in one year for providing CCTV coverage of a property.The cost of providing this coverage to the security firm is $74,000,payable now,and the interest rate is 8.5%.Should the firm take the contract?

• A)Yes,since net present value (NPV)is positive.
• B)It does not matter whether the contract is taken or not,since NPV = 0.
• C)Yes,since net present value (NPV)is negative.
• D)No,since net present value (NPV)is negative.
• E)No,since net present value (NPV)is positive.

---

Definitions:

Personal Values

Core beliefs or principles that guide an individual's behavior and decision-making.

General Adaptation Syndrome

is a three-phase process (alarm, resistance, exhaustion) that describes the physiological response to stress over time.

Stress

Stress is a psychological and physical response to demands or challenges that can stem from a variety of sources, including work, relationships, and environmental pressures.

Eustress

Positive stress that can actually improve performance or productivity by motivating individuals to overcome challenges or achieve goals.