Which of the Following Investments Has the Highest Net Present

question 75

Multiple Choice

Which of the following investments has the highest net present value (NPV) ,given that the interest rate is 5.5%?

• A)one that pays $250 at the end of each of the next four years
• B)one that pays $500 at the end of next year and $500 in four years' time
• C)one that pays $250 at the end of next year and $750 in four years' time
• D)one that pays $200 at the end of next year,$200 at the end of the second year,and $300 at the end of the third and fourth years
• E)one that pays $250 at the beginning of each year for the next four years.

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Definitions:

Partial Reinforcement

A conditioning schedule where a response is reinforced only some of the time, which can lead to a stronger and more resistant response.

Continuous Reinforcement

A schedule of reinforcement where every occurrence of the targeted behavior is reinforced, used to teach new behaviors.

Negatively Reinforced

refers to the process of increasing a behavior's occurrence by removing or avoiding a negative consequence or stimulus.

Positively Reinforced

Involves the addition of a stimulus following a behavior that increases the likelihood of the behavior being repeated.