At the End of the Next Four Years,a New Machine

question 66

Multiple Choice

At the end of the next four years,a new machine is expected to generate net cash flows of $8,000,$12,000,$10,000,and $15,000,respectively.What are the cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation?

• A)$41,557.
• B)$47,700.
• C)$32,403.
• D)$38,108.

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Definitions:

Absolute Threshold

The minimal intensity of a stimulus that is required to be detected 50% of the time.

Difference Threshold

The smallest difference in stimulation that can be reliably detected by an observer when two stimuli are compared; also called just noticeable difference (jnd).

Sensory Sensitivity

A condition where individuals are extremely responsive to environmental stimuli such as sounds, lights, and textures.

Sensory Crossover

The phenomenon where stimulation of one sensory pathway leads to automatic experiences in a second sensory pathway.