Compute the NPV for Project X with the Cash Flows

question 81

Multiple Choice

Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent.
$$\begin{array}{l}\begin{array} {| l | l | l | l | l | l | l |}\hline\text {Time: }&0&1&2&3&4&5\\\hline\text {Cash flow:}&-1,000&-75&100&100&0&2,000\\\hline\end{array}\end{array}$$

• A) ?$639.96
• B) $360.04
• C) $392.44
• D) $486.29

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Definitions:

Survey

A method of gathering information from a sample of individuals, often used to collect data on opinions, experiences, or behaviors.

Random Sample

A subset of individuals chosen from a larger population, where each member has an equal chance of being selected, ensuring the sample's representativeness.

Large Group

A social grouping that is too large for all members to maintain direct acquaintance and interaction, typically requiring formal structures for communication and decision-making.

Equal Chance

The principle that every individual or element in a sample or population has an identical likelihood of being chosen for something, commonly associated with random selection or assignment.