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

question 25

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.

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Definitions:

Racial Bias

Prejudice or preferential treatment towards people based on their race, often rooted in stereotypes and societal structures.

Fatigue

A state of physical or mental exhaustion that can result from prolonged stress, physical activity, or illness.

Implicit Racial Associations

Refers to unconscious biases or attitudes towards other races that individuals may hold, affecting their behaviors and judgments without explicit awareness.

Explicit Prejudice

Conscious, openly held prejudicial attitudes or beliefs towards a group or its members.