Project H Requires an Initial Investment of $100,000 and the Produces

question 75

Multiple Choice

Project H requires an initial investment of $100,000 and the produces annual cash flows of $45,000 per year for each of the next 3 years. Project T also requires an initial investment of $100,000 and produces cash flows of $30,000 in year 1, $40,000 in year 2, and $70,000 in year 3. If the discount rate is 10% and the projects are not mutually exclusive

• A) Project H should be chosen.
• B) Project T should be chosen.
• C) H and T are equally attractive.
• D) Both projects should be accepted.

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Definitions:

Hippocampus

Curved structure located within each temporal lobe, responsible for the formation of long-term declarative memories.

Language

A complex system of communication that uses symbolic sounds, gestures, or marks to convey messages and facilitate understanding among individuals.

Sapir And Whorf

Proposers of the Sapir-Whorf hypothesis, which suggests that the structure of a language affects its speakers' world view or cognition.

Skinner And Watson

B.F. Skinner and John B. Watson are prominent figures in the development of behaviorism, an approach in psychology emphasizing the study of observable behavior over internal mental processes.