Assume That the Net Present Value of a Project Is

question 14

Multiple Choice

Assume that the net present value of a project is $74.3 million at 6%, and -$21.2 million at 9%. Use linear interpolation to compute the rate of return correct to the nearest hundredth of a percent.

• A) 2.33%
• B) 8.33%
• C) 6.67%
• D) 4.2%
• E) 10.2%

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Definitions:

Sedative

A type of medication or substance that induces relaxation, calmness, and often sleepiness, used to reduce stress or anxiety.

Antipsychotic

A type of medication mainly used to manage psychosis, including delusions or hallucinations.

Defense Mechanism

Psychological strategies employed unconsciously to protect a person from anxiety arising from unacceptable thoughts or feelings.

Denial

A defense mechanism in which confrontation with a reality or problem is avoided by denying the existence of the problem or reality.