A Project Has the Following Cash Flows: C0 = -100,000;

question 31

Multiple Choice

A project has the following cash flows: C0 = -100,000; C1 = 50,000; C2 = 150,000; C3 =
100,000. If the discount rate changes from 12% to 15%, what is the change in the NPV of the
Project (approximately) ?

• A) 12,750 increase
• B) 12,750 decrease
• C) 122,650 increase
• D) 135,400 decrease

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Definitions:

Habituation

A process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Newborn

An infant who is in the initial period after birth, typically considered to be the first few weeks of life.

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The ability to move or be moved freely and easily; also refers to technology devices like smartphones that support this capability.

Truck Horn

A loud horn used on trucks for signaling, often to alert other drivers or pedestrians.