A Project Will Produce Cash Inflows of €1,750 a Year

question 3

Multiple Choice

A project will produce cash inflows of €1,750 a year for four years.The project initially costs €10,600 to get started.In year five, the project will be closed and as a result should produce a cash inflow of
€8,500.What is the net present value of this project if the required rate of return is 13.75%?

• A)-€5,474.76
• B)-€1,011.40
• C)-€935.56
• D)€1,011.40
• E)€5,474.76

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Definitions:

Attitude Components

The elements that constitute attitudes, including cognitive (thoughts), affective (feelings), and behavioral (actions) components.

Feelings

Involve subjective experiences associated with emotions and mood, reflecting personal reactions to emotions, people, or situations.

Internal Locus

The belief that one's outcomes are a result of personal efforts and abilities, characterized by a sense of self-agency and responsibility.

External Locus

A belief that one's life outcomes are influenced by external forces or fate rather than one's own efforts; contrasted with an internal locus of control.