Sloan IncRecently Invested in a Project with a 3-Year Life Span

question 138

Multiple Choice

Sloan Inc.recently invested in a project with a 3-year life span.The net present value was $9,000 and annual cash inflows were $21,000 for year 1; $24,000 for year 2; and $27,000 for year 3.The initial investment for the project, assuming a 15% required rate of return, was $\begin{array}{rrr}& \text { Present Value } & \text { PV of an Annuity } \\\text { Year } & \text { of } 1 \text { at } 15 \% & \text { of } 1 \text { at } 15 \%\\\hline 1 & .870 & .870 \\2 & .756 & 1.626 \\3 & .658 & 2.283\end{array}$

• A)$45,792.
• B)$45,180.
• C)$29,232.
• D)$38,376.

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Definitions:

Linking Pins

A concept describing individuals who connect different groups or levels within an organization, facilitating coordination and communication.

Interdependence

The mutual reliance between two or more groups, individuals, or systems where the actions of one affect the outcomes of the others.

Accommodation

Or smoothing, involves playing down differences and finding areas of agreement.

Conflict Management

Involves employing strategies to limit the negative aspects of conflict while increasing the positive aspects with the goal of improving learning and group outcomes.