A Proposed Project Requires an Initial Cash Outlay of $25,000

question 80

Multiple Choice

A proposed project requires an initial cash outlay of $25,000 for equipment and an additional cash outlay of $8,000 in Year 1 to cover operating costs.During Years 2 through 4, the project will generate cash inflows of $16,000 a year.What is the net present value of this project at a discount rate of 9 percent?

• A)$4.817.17
• B)$4,864.53
• C)$4,238.78
• D)$2,873.44
• E)$3,948.34

---

Definitions:

Take Marketing Actions

The process of implementing strategies and tactics as part of a marketing plan to achieve specific objectives, such as increasing brand awareness, driving sales, or entering new markets.

Develop the Research Plan

The process of outlining strategies and methodologies for gathering, analyzing, and interpreting data to make informed business decisions.

Take Marketing Actions

The implementation of strategies and tactics to promote, sell, and distribute a product or service.

Collect Relevant Information

The process of gathering data or facts that are directly related to a specific topic, question, or problem.