What Is the Net Present Value of a Project That $£ 12,670$

question 20

Multiple Choice

What is the net present value of a project that has an initial cash outflow of $£ 12,670$ and the following cash inflows? The required return is $11.5 \%$ .

• A)£218.68
• B)£370.16
• C)£768.20
• D)£1,249.65
• E)£1,371.02

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Definitions:

Levittown

One of the first mass-produced suburban housing developments in the U.S., symbolizing post-WWII suburban growth.

Recessions

Periods of economic decline identified by a decrease in GDP in two successive quarters, characterized by reduced spending and increased unemployment.

Economy Size

A measure of the total value of all the goods and services produced by a country's economy over a specific time period. It is typically assessed through the gross domestic product (GDP).

Population Size

The total number of individuals within a specified area or group.