A Company Facing an Interest Rate of 8% Must Choose

question 41

Multiple Choice

A company facing an interest rate of 8% must choose among projects offering the following four-year cash flows.If the company is employing the net present value criterion,which project should they choose?

• A)$25,000 in year 1;$15,000 in year 2;$10,000 in year 3;and $5,000 in year 4
• B)$5,000 in year 1;$5,000 in year 2;$20,000 in year 3;and $30,000 in year 4
• C)$15,000 in year 1;$15,000 in year 2;$15,000 in year 3;and $15,000 in year 4
• D)$5,000 in year 1;$5,000 in year 2;$25,000 in year 3;and $25,000 in year 4

---

Definitions:

Chronic Diseases

Long-lasting conditions that can be controlled but not always cured, affecting an individual's quality of life.

Infectious Diseases

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi, that can be spread directly or indirectly from one person to another.

Genetic Influences

The impact of genes inherited from parents on an individual's characteristics, behaviors, and predispositions to certain conditions or traits.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, important for maintaining physical fitness and health.