What Is the Net Present Value of a Project with the Following

question 106

Multiple Choice

What is the net present value of a project with the following cash flows if the discount rate is 9 percent?

• A)-$972.61
• B)$972.61
• C)-$892.30
• D)$892.30
• E)$812.90

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Definitions:

Shortages

Occur when the demand for a good or service exceeds its supply in a given market, often leading to price increases.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.

Least Costly Way

Refers to a method or strategy that aims to achieve a particular goal or produce a specific outcome with the minimum possible expense or use of resources.