You Require an Internal Rate of Return of 8% to Accept

question 14

Multiple Choice

You require an internal rate of return of 8% to accept a project. If the project will yield $10,000 per year for 10 years, what is the maximum amount that you would be willing to invest in the project?

• A) $51,400
• B) $67,100
• C) $100,000
• D) $144,870

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Definitions:

Psychophysics

A branch of psychology dealing with the relationship between physical stimuli and their subjective correlates, or perceptions.

Physical Energies

Physical energies refer to the various forms of kinetic and potential energy associated with the motion, position, or structure of physical objects.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference."

Auditory Convergence

A phenomenon in which sounds from different sources merge into a single perceived auditory event.