Alfarsi Industries Uses the Net Present Value Method to Make

question 57

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 B is:

• A) $780.
• B) $(15,780).
• C) $9,000.
• D) $39,797.
• E) $(5,918).

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Inner Space

A psychological or spiritual concept referring to the exploration of one's own mind or inner self.

Amygdala

A section of the brain that is responsible for detecting fear and preparing for emergency events.

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Specific pieces of work or activities that are to be accomplished within a given timeframe.

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Electroencephalography, a method used to record electrical activity of the brain through electrodes placed on the scalp.