Kampgrounds Inc

question 81

Multiple Choice

Kampgrounds Inc.is considering purchasing a parcel of wilderness land near a popular historic site.Although this land will cost Kampgrounds $400,000 today,by renting out wilderness campsites on this land,Kampgrounds expects to make $35,000 at the end of every year indefinitely.If the appropriate discount rate is 8%,then the NPV of this new wilderness campsite is closest to:

• A)-$50,000.
• B)-$37,500.
• C)$37,500.
• D)$50,000.

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Definitions:

Bottom-up Processing

An approach to information processing that starts with the sensory input and builds up to the final representation in the brain.

Absolute Threshold

The minimum stimulus energy needed to detect a particular stimulus 50 percent of the time.

Different Pitches

Variations in the frequency of sound waves, resulting in different tones or musical notes perceived by the listener.

Sensation

The method through which our sensory receptors and nervous system accept and depict energy from stimuli in our environment.