What Is the Net Present Value of a Project That

question 130

Multiple Choice

What is the net present value of a project that has an initial cash outflow of $18,900 and the following cash inflows? The required return is 13.25 %.

• A) ($4,847.47)
• B) ($3,840.60)
• C) ($2,636.21)
• D) $3,109.16
• E) $4,052.53

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Definitions:

Delivering a Product

The process of transporting a product from the manufacturer or supplier to the final customer or point of use.

Supply Chain Efficiency

The effectiveness with which a supply chain operates, aiming to minimize costs and waste while maximizing speed and quality.

Implied Uncertainty

The uncertainty in outcomes or future conditions that is suggested or inferred but not explicitly stated or known.

Cost-Responsiveness Efficient Frontier

An analytical concept in supply chain management that shows the trade-off between the cost of a supply chain and its responsiveness to customer demands.