A Project Manager Is Using the Net Present Value Method

question 61

Multiple Choice

A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 12% required rate of return and expects a 3% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table?

• A) -$9,762
• B) -$56,859
• C) -$69,387
• D) -$98,780

Understand the concept of transferable skills and their significance across various job settings.

Know how to effectively convey accomplishments and relevant experiences in a résumé.

Comprehend the process of performing a self-inventory to aid in job search strategies.

Recognize the value of diverse experiences, such as volunteer work, in developing skills applicable to future employment.

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Definitions:

Sold Rooms Percentage

A metric in the hospitality industry that represents the ratio of rooms booked to the total number of available rooms, indicating occupancy rate and hotel performance.

Yield Management

A pricing strategy that aims to maximize revenue by dynamically setting prices based on the supply and demand for a product or service.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, particularly in regard to the management of resources, production, and distribution of goods and services.

Demand Curve

A graph showing the relationship between the price of an item and the quantity demanded at that price.