California Hideaways Is Considering a New Project Whose Data Are

question 48

Multiple Choice

California Hideaways is considering a new project whose data are shown below. The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1 to 4.)

• A) $28,499
• B) $23,402
• C) $19,417
• D) $16,284

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Definitions:

SMART Goal

Stands for goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, used in project management and personal development to achieve success.

Time-Bound

Relating to objectives or initiatives that have a specific duration or deadline by which they must be achieved or completed.

Motivation

is the psychological drive or force that prompts an individual to act in a certain way to achieve specific goals or satisfy needs.

SMART Goal

A framework for setting objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound, facilitating clear and attainable goal-setting.