Kresta Can Invest in a Scheme Which Will Pay $10,000

question 79

Multiple Choice

Kresta can invest in a scheme which will pay $10,000 at the end of each of the next four years.She must make an investment at the start of the first year of $32,000.Should she make this investment,given that the interest rate is 7%?

• A)Yes,because the net present value (NPV)is negative.
• B)Yes,because the net present value (NPV)is positive.
• C)No,because the net present value (NPV)is negative
• D)No because the net present value (NPV)is positive.
• E)No,because the net present value (NPV)is zero.

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Definitions:

Pooled Interdependence

A form of organizational interdependence where separate tasks or work units operate independently but contribute to a common output.

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to stay in it, which influences group solidarity and productivity.

Team Size

Refers to the number of members within a group working towards a common goal, influencing the team's dynamics and performance.

Social Loafing

The tendency of individuals to exert less effort when working in a group than when working alone.