Ellmann Systems Is Considering a Project That Has the Following

question 88

Multiple Choice

Ellmann Systems is considering a project that has the following cash flow and cost of capital (r) data.What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. $$\begin{array} { l c c c c } \text { r: } &{ 90 \% } & & \\\text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,000 & \$ 500 & \$ 500 & \$ 500\end{array}$$

• A) $265.65
• B) $278.93
• C) $292.88
• D) $307.52
• E) $322.90

---

Definitions:

Armpit

The area beneath the junction of the arm and the body, known for its concentration of sweat glands.

Clonal Selection Theory

A theory in immunology that explains how the immune system responds to specific antigens by activating the clone of cells that can recognize and attack the invader.

Antigen

Foreign substance, usually a protein or a polysaccharide, that stimulates the immune system to react, such as to produce antibodies.