A Firm Has an Opportunity to Invest $95,000 Today That

question 13

Multiple Choice

A firm has an opportunity to invest $95,000 today that will yield $109,250 in one year. If interest rates are 4%, what is the net present value (NPV) of this investment?

• A) $10,048
• B) $11,053
• C) $16,077
• D) $14,250

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Definitions:

Categorical Approach

A method in psychiatry and psychology that classifies mental disorders into specific, distinct categories based on symptomatology.

Mental Disorder

A broad term for conditions affecting mental health, characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.

Diagnostic Criteria

A set of guidelines used to determine the presence of a disease or disorder.

Dimensional Approach

An approach in psychology that considers mental disorders along a continuum rather than distinct categories, emphasizing the range of severity and symptoms.