Sloan Inc Recently Invested in a Project with a 3-Year Life

question 116

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 $\begin{array}{llr}& \text { Present Value } & \text { PV of an Annuity } \\\text { Year } & \text { of } 1 \text { at } 15 \% & \text { of } 1 \text { at } 15 \%\\1 & .870 & .870 \\2 & .756 & 1.626 \\3 & .658 & 2.283\end{array}$

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

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Definitions:

Primary Sex Characteristic

The physical attributes directly involved in reproduction, such as the ovaries in females and testes in males.

Penis Growth

Refers to changes in penis size, often discussed in the context of puberty or medical treatments.

Breast Growth

The natural development of breasts during puberty, influenced by hormonal changes.

Habituation-Dishabituation

Refers to the process of becoming accustomed to a stimulus over time, reducing the response to it, and the renewal of interest if the stimulus changes.