A Brewery Is Considering Adding a New Line of Craft

question 20

Multiple Choice

A brewery is considering adding a new line of craft beers to its product mix.The new beer will require additional brewing and bottling capacity at a cost of $15 million,but is expected to generate new sales of $5 million per year for the next 5 years.If the brewery has a cost of capital of 6%,what is the NPV of this investment?

• A)$6.1 million
• B)$10 million
• C)-$15 million
• D)$8.6 million
• E)$3.7 million

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Definitions:

Cognitive-Behavioral

A type of psychotherapeutic treatment that helps individuals understand the thoughts and feelings that influence behaviors.

Theoretical Perspective

A set of assumptions or principles used to analyze, explain, and interpret social phenomena.

Somatic Symptom Disorder

A condition in which a person experiences intense and excessive distress or anxiety related to physical symptoms, which may not have a medical explanation.

Somatization Pattern

The manifestation of psychological distress through the presentation of physical symptoms without a corresponding medical condition.