A Company Is Considering an Iron Ore Extraction Project That

question 94

Multiple Choice

A company is considering an iron ore extraction project that requires an initial investment of $518,000 and will yield annual cash inflows of $158,000 for four years.The company's discount rate is 9%.What is the NPV of the project?
Present value of an ordinary annuity of $1:

• A)$6,080
• B)$(103,600)
• C)$103,600
• D)$(6,080)

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Definitions:

Persuasion

A deliberate attempt to influence the attitudes and/or behavior of another person.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or social pressures.

Obedience

The act of following orders or complying with authority, often studied in the context of how people respond to commands from those in power.

Matching Hypothesis

The theory that individuals are more likely to form and succeed in relationships with others who are similarly attractive.