Benji's Has an Opportunity with an Initial Cash Flow of $48,900

question 5

Multiple Choice

Benji's has an opportunity with an initial cash flow of $48,900 and future cash flows of -$31,300 in Year 1 and -$21,600 in Year 2.The discount rate is 7 percent.Should this project be accepted or rejected? Why?

• A)Accepted;because the IRR of 5.28 percent is less than the discount rate
• B)Accepted;because the IRR of 5.77 percent is less than the discount rate
• C)Rejected: because the IRR of 5.28 percent is less than the discount rate
• D)Rejected;because the IRR of 5.77 percent is less than the discount rate
• E)Rejected;because the IRR of 6.01 percent is less than the discount rate

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Definitions:

Psychoanalysis

A method of psychological therapy originated by Sigmund Freud that emphasizes the exploration of unconscious conflicts and desires.

Exposure Therapies

Behavioral techniques, such as systematic desensitization and virtual reality exposure therapy, that treat anxieties by exposing people (in imaginary or actual situations) to the things they fear and avoid.

Mary Cover Jones

A pioneering psychologist known for her work in desensitization and conditioning.

Unconditional Positive Regard

A concept in psychology that suggests showing complete support and acceptance towards someone no matter what they say or do.