If the Net Present Value of a Project Is −$10,000

question 20

Multiple Choice

If the net present value of a project is −$10,000, and the net present value of leasing for the project is +$12,000, calculate the APV (adjusted present value) of the project.

• A)−$2,000
• B)$2,000
• C)$12,000
• D)−$10,000

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Definitions:

Note Payable

A written promise to pay a specific sum of money on a future date or dates, typically with interest.

Journal Entry

A record in accounting that notes the debit and credit effects of a financial transaction.

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The acquisition of a truck, which is a capital investment and may be classified as a fixed asset on the balance sheet.

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