A Project Has an Initial Cost of Of £20m, and After

question 50

Multiple Choice

A project has an initial cost of of £20m, and after one year there is cash flow of £5.5m. If the opportunity cost of capital is 10 per cent, what is the NPV?

• A) - £15.95m
• B) £15.95m
• C) £25m
• D) - £15m

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Definitions:

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug known for altering perception and causing hallucinations.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Higher Status

A position that is regarded as superior or more prestigious compared to others within a social hierarchy.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally and known for its potential for addiction.