What Is the Net Present Value for a Project Costing

question 1

Multiple Choice

What is the Net Present Value for a project costing $200,000 in the first year no discount) that produces a net benefit of $40,000/year for seven years when the discount rate is 7%?

• A) $215,572
• B) $15,572
• C) 1.0779
• D) 5 years

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Definitions:

Critical Information

Vital data or knowledge that is essential for a system or organization to operate effectively and make informed decisions.

Leadership Model

A framework or theory that describes how leaders should act to be effective and facilitate the achievement of organizational goals.

Organizational Performance

Measures how efficiently and effectively an organization meets its goals and objectives, typically evaluated through financial, operational, and strategic metrics.

Superior Performance

Achieving outcomes that significantly surpass set standards or expectations, often through exceptional skill or effort.