A Four-Year Project Has an Initial Outlay of $100,000

question 375

Multiple Choice

A four-year project has an initial outlay of $100,000. The future cash inflows from its project are $50,000 for years one and two and $40,000 for years three and four. Given a discount rate of 10%, will the project be accepted?

• A) Accept the project as the NPV is $44,150.
• B) Reject the project as the NPV is $44,150.
• C) Reject the project as the NPV is $(44,150).
• D) Accept the project as the NPV is $18,250.
• E) Reject the project as the NPV is $18,250.

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Definitions:

Declarative Memories

Memories that can be consciously recalled, such as facts and events, and are part of the explicit memory system.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Hippocampus

A region of the brain that is associated with memory formation and spatial navigation.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements, balance, and posture.