DiplomatCom Is Considering a Project That Has an Up-Front Cost

question 3

Multiple Choice

Diplomat.com is considering a project that has an up-front cost of $3 million and is expected to produce a cash flow of $500,000 at the end of each of the next 5 years. The project's cost of capital is 10%.
-Based on the above data, what is the project's net present value?

• A) -$1,312,456
• B) -$1,104,607
• C) -$875,203
• D) $105,999
• E) $321,788

---

Definitions:

Social Movements

Collective, organized efforts aiming to promote or resist change in society regarding specific issues.

Urban Race Riots

Violent disturbances in city areas, often involving racially motivated conflicts between ethnic or racial groups.

Deprivation

A state of lacking or being denied essential resources, rights, or conditions for a standard level of well-being.

Collective Action

Activities undertaken by a group of people with the aim of achieving a common goal.