Alfarsi Industries Uses the Net Present Value Method to Make

question 61

Multiple Choice

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: The present value factors of $1 each year at 15% are:
The present value of an annuity of $1 for 3 years at 15% is 2.2832.
The net present value of Investment A is:

• A) $18,266.
• B) $(15,000).
• C) $9,000.
• D) $(20,549).
• E) $3,266.

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Definitions:

Specific Antigen

A unique molecule or part of a molecule that triggers an immune response, being recognized by specific antibodies.

Immunoglobulin

Any of a class of proteins present in the serum and cells of the immune system, which function as antibodies.

Plasma Membrane

The lipid bilayer membrane surrounding a cell that controls the passage of substances in and out, maintaining the cell's internal environment.

Lysozyme

Antibacterial enzyme in body secretions such as saliva and mucus.