Use the Information Below to Answer the Following Questions

question 61

Multiple Choice

Use the information below to answer the following questions. Depreciation has been calculated on a straight-line basis. You should assume that all cash flows occur at the end of the year in which they arise. The company's cost of capital is 10%. Ignore taxation.
-Refer to the table above. The net present value (rounded) is:

• A) $883,000
• B) $860,500
• C) $1,019,900
• D) $984,000

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Price Level

A measure of the average prices of goods and services in the economy.

Graph

A visual representation of data, relationships, or trends through various types of charts such as line, bar, or pie charts.

Year 2021

The period of time that began on January 1, 2021, and ended on December 31, 2021.