Compute the NPV Statistic for Project Y Given the Following

question 54

Multiple Choice

Compute the NPV statistic for Project Y given the following cash flows if the appropriate cost of capital is 10 percent.
Project Y
$$\begin{array} { c c c c c c c c } \text { Trme } &0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash Flow } & - \$ 50,000 & \$ 7,000 & \$ 20,000 & \$ 20,000 & \$ 20,000 & \$ 10,000\end{array}$$

• A) ?$19,594.29
• B) $7,788.34
• C) $9,367.11
• D) $107,788.34

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Definitions:

Per Capita GNI

A measure of a country's economic output that accounts for its number of people; it divides the gross national income by the population size.

Cash Economy

An economic system where transactions are conducted with the direct exchange of physical currency, as opposed to digital or credit transactions.

Modernization Theory

A theory that suggests societies progress through a series of stages of economic development, from traditional to modern.

Economic Development

A process by which a nation improves the economic, political, and social well-being of its people.