A Project Will Produce Cash Inflows of $3,650 a Year

question 3

Multiple Choice

A project will produce cash inflows of $3,650 a year for four years. The start-up costs are $15,000. In year five, the project will be closed and as a result should produce a cash inflow of $7,500. What is the net present value of this project if the required rate of return is 11.5 %?

• A) $487.82
• B) $501.09
• C) $533.23
• D) $556.07
• E) $608.18

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Definitions:

Policies

Formal guidelines or rules established by organizations or governments to govern behavior, procedures, and decision-making.

Individualist

Refers to a person or philosophy that emphasizes the moral worth of the individual over collective or group identities.

High Challenge

Situations or tasks that require a significant degree of effort, skills, or resources to accomplish, often associated with high levels of personal and professional growth.

Low Support

Situations or environments where there is minimal guidance, assistance, or emotional backing provided to individuals or groups.