A Project Has an Initial Cash Outlay of $16,500

question 261

Multiple Choice

A project has an initial cash outlay of $16,500. Cash inflows are $5,200 in year 1, $6,800 in year 2, and $8,100 in year 3. What is the net present value if an 8.30% discount rate is applied to this project?

• A) $333.33
• B) $466.04
• C) $475.88
• D) $574.76
• E) $601.13

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Definitions:

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding from minor injuries.

Thrombocytopenia

A blood disorder characterized by abnormally low levels of platelets, which are essential for blood clotting.

Eosinophilia

An increased number of eosinophils, a type of white blood cell, often indicating an allergic reaction or infection.

Warfarin

A medication used as an anticoagulant to prevent the formation of harmful blood clots by inhibiting blood clotting factors.