An Initial Investment of $400,000 Will Produce an End of Year

question 90

Multiple Choice

An initial investment of $400,000 will produce an end of year cash flow of $480,000. What is the NPV of the project at a discount rate of 20%?

• A) $176,000
• B) $80,000
• C) $0 (zero)
• D) None of the above

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Definitions:

Planned Change

A deliberate effort to modify processes, strategies, or structures within an organization to improve effectiveness.

Open Systems

A perspective in systems theory where any system continuously interacts with its environment and can adapt and evolve with changes.

Action Research

A participatory research method that involves taking action and reflecting upon the results to improve practices or address problems.

Client-Consultant Relationship

The professional interaction and dynamic between a consultant and their client, focusing on achieving specific objectives through advice and solutions.