A Given Project Requires a $25,000 Investment and Is Expected

question 25

Multiple Choice

A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows:
$$\begin{array} { c c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \\\hline \$ 4,000 & \$ 15,000 & \$ 6,000 & \$ 25,000\end{array}$$
Assuming a discount rate of 10%,what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
$$\begin{array} { c c c } i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}$$

• A) $6,217.50
• B) ($4,459.80)
• C) ($6,217.50)
• D) $8,275.00
• E) $0.00

Recognize identification as a key process in personality formation and social roles.

Comprehend the interdependence between personality and socialization.

Learn about the active roles adults and children play in the socialization process.

Understand socialization as a dual process of becoming part of a larger community while developing individuality.

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Definitions:

Risk Averse

Refers to the preference of individuals or entities to avoid uncertainty and risky situations, opting for the safest outcome when faced with choices.

Whole Life

A type of life insurance policy that offers lifetime coverage, with consistent premiums and a savings component.

Fixed-Rate Tax-Deferred

Describes investment accounts or financial products that accumulate earnings taxed at a later date instead of when they are earned, with a fixed interest rate.

Savings Plan

A program that allows individuals to allocate a portion of their income for long-term savings or investments.