Aviary,Inc

question 76

Multiple Choice

Aviary,Inc.is considering a five-year project that has initial after-tax outlay or after-tax cost of $170,000.The future after-tax cash inflows from its project for years 1 through 5 are $45,000 for each year.Aviary uses the net present value method and has a discount rate of 11.25%.Will Aviary accept the project?

• A)Aviary accepts the project because the NPV is about $5,455.
• B)Aviary accepts the project because the NPV is about $165,275.
• C)Aviary rejects the project because the NPV is about -$4,725.
• D)Aviary rejects the project because the NPV is about -$154,725.

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Definitions:

Partial Reinforcement

A conditioning schedule in which a reward is not provided every time the desired behavior is performed, leading to more resistant learned behaviors.

Extinction Procedure

A behavioral technique in which reinforcement of a previously reinforced behavior is discontinued, leading to a decrease in the frequency of the behavior.

Operant Conditioning

A process of acquiring knowledge in which the force of an activity is changed by either positive reinforcement or penalties.

Token Economy

A behavioral therapy method that involves rewarding desired behaviors with tokens that can be exchanged for various privileges or treats.