The Present Value of the Total Costs Over a Five

question 109

Multiple Choice

The present value of the total costs over a five year period for Project April is $50,000.The net present value of total costs over a 4 year period for Project October is $40,000.The company uses a discount rate of 9%.Which project should it choose and why?

• A)April because it has a higher net present value (NPV).
• B)April because is has a higher equivalent annual cost (EAC).
• C)October because it has a shorter life.
• D)October because it has a lower equivalent annual cost (EAC).

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Definitions:

Antecedent

An event, condition, or stimulus that precedes a behavior and may influence or trigger the behavior to occur.

Stimulus Control

A behavioral technique in psychotherapy that involves altering the environment to reduce the stimuli that trigger unwanted behaviors.

Contingency Management

A behavior modification technique based on the systematic reinforcement of desired behaviors and the withholding of reinforcement for undesired behaviors.

Behavioral Education

An educational approach that focuses on teaching skills and behaviors through a system of rewards and consequences.