Use the Information for the Question(s)below

question 19

Multiple Choice

Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard.Development will take Boulderado four years and cost $250,000 per year,with the first of the four equal investments payable today upon acceptance of the project.Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years.Boulderado's discount rate is 10%.
-The NPV for Boulderado's snowboard project is closest to:

• A)$228,900.
• B)$46,900.
• C)$51,600.
• D)$23,800.

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Definitions:

Acronym

An abbreviation formed from the initial letters of other words and pronounced as a word.

Biofeedback

A technique that teaches individuals to control physiological processes such as heart rate or muscle tension through feedback from these processes.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, important in decision making, control of social behaviors, and expression of personality.

Amygdala

A part of the brain located within the temporal lobes, playing a key role in the processing of emotions such as fear, anger, and pleasure.