A Project Manager Is Using the Net Present Value Method

question 90

Multiple Choice

A project manager is using the net present value method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the NPV of a project that has cash flows as shown in the table?

• A)$264,252
• B)$324,606
• C)$442,242
• D)$398,780

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Definitions:

Fallacy

A flawed argument that uses poor reasoning or misrepresents evidence, often leading to incorrect conclusions.

Inductive Reasoning

A reasoning method that involves generalizing from a set of specific observations to reach a broader conclusion.

Rent Control Laws

Regulations that limit the amount landlords can charge for leasing property to ensure affordable housing for tenants.

Exploiting

Utilizing resources or situations to gain an advantage, often unfairly or unethically.