Compute the NPV Statistic for Project U Given the Following

question 28

Multiple Choice

Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent.
Project U
$$\begin{array} { l l l l c c c c } \text { Time } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash Flow } & - \$ 1,000 & \$ 350 & \$ 1,480 & - \$ 520 & \$ 400 & - \$ 100\end{array}$$

• A) $201.69
• B) $273.82
• C) $383.63
• D) $397.21

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Definitions:

High Sensitivity

The capability of an assessment to accurately detect individuals who have the disease (true positive rate).

Low Specificity

A characteristic of a diagnostic test that indicates a high likelihood of false positives, meaning it often indicates a disease or condition is present when it is not.

Sensitivity

The ability of a test to correctly identify those with the disease (true positive rate).

Process Consultant

A professional who assists organizations in understanding and improving their internal processes and interactions for better efficiency and communication.