Smythe Company -Refer to Smythe Company

question 88

Multiple Choice

Smythe Company $$\begin{array}{l}\text { Smythe Company is considering the following investment: }\\\begin{array} { l l } \text { Investment } & \$ 140,000 \\\text { Annual revenues } & \$ 96,000 \\\text { Annual variable costs } & \$ 32,000 \\\text { Annual fixed out-of-pocket costs } & \$ 20,000 \\\text { Discount rate } & 12 \% \\\text { Expected life of project } & 8 \text { years }\end{array}\end{array}$$
-Refer to Smythe Company. What is the present value of the future cash flows?

• A) $136,822
• B) $152,538
• C) $204,884
• D) $218,592

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Definitions:

Electroencephalography

A non-invasive test that involves recording the electrical activity of the brain through electrodes placed on the scalp.

Brain Activity

The functioning of the brain involving neuronal and synaptic processes.

Cognitive Therapy

Psychotherapy based on the perspective that thoughts intervene between events and emotions, and thus the treatment of emotional disorders requires changing maladaptive patterns of thinking.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and reinforcement strategies.