A Project Has an Initial Investment of 100

question 3

Multiple Choice

A project has an initial investment of 100. You have come up with the following estimates of the projects with cash flows. If the cash flows are perpetuities and the cost of capital is 10%. What does a sensitivity analysis of NPV (no taxes) show?

• A) -50, 20, +100
• B) -100, -50, +80
• C) -50, +50, +70
• D) None of the above

---

Definitions:

Self-mutilation

The deliberate harm or alteration of one’s own body tissue without suicidal intent.

Sexual Abuse

An undesired sexual behavior by one person upon another, often exerting power, force, or coercion.

Aseptic Technique

A set of practices and procedures used in healthcare to prevent the introduction of pathogens and minimize the risk of infection.

Disturbed Personal Identity

A mental state in which an individual is unable to maintain a coherent sense of self or identity, often resulting from trauma or mental health conditions.