A Project Will Produce Cash Inflows of $1,750 a Year

question 51

Multiple Choice

A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five,the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13.75%?

• A) -$5,474.76
• B) -$1,011.40
• C) -$935.56
• D) $1,011.40
• E) $5,474.76

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Definitions:

Embryo Transfer

A step in assisted reproduction where an embryo is placed into the uterus of a female with the intent of establishing a pregnancy.

Preembryonic Development

The earliest phase of human development, from fertilization to the formation of the embryonic disc, which is before the actual embryo begins to form.

Morula

An early stage in embryonic development consisting of a solid ball of cells.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, from which the digestive tract and associated structures develop.