Net Present Value: What Is the Net Present Value of This

question 3

Multiple Choice

Net present value: What is the net present value of this project?

• A) $890,197
• B) $1,213,909
• C) $905,888
• D) $777,713

---

Definitions:

Reactivity

The phenomenon in which the presence of an observer or the awareness of being measured alters the behavior or responses of subjects.

Variability

The degree to which scores in a dataset differ from each other and from their average.

Reliability Coefficient

The reliability coefficient is a measure that assesses the consistency or stability of a test score or instrument over time.

Correlation

Correlation is a statistical measure that expresses the extent to which two variables change together. If the variables tend to increase and decrease in relation to each other, the correlation is positive; if one increases as the other decreases, it is negative.