A Project Will Produce Cash Inflows of $3,650 a Year

question 166

Multiple Choice

A project will produce cash inflows of $3,650 a year for four years. The start-up costs are $15,000. In year five, the project will be closed and as a result should produce a cash inflow of $7,500. What
Is the net present value of this project if the required rate of return is 11.5 percent?

• A) $487.82
• B) $501.09
• C) $533.23
• D) $556.07
• E) $608.18

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Definitions:

Parts Per Trillion

A unit of measurement used to denote extremely small concentrations of a substance in another, equivalent to one part in 10^12 parts.

Nuclear Change

Alterations at the atomic nucleus level, including nuclear reactions such as fission, fusion, and radioactive decay, releasing significant amounts of energy.

Mass

Mass is a fundamental property of physical objects that quantifies the amount of matter they contain. It is a determinant of an object's resistance to acceleration when a force is applied.

Nuclear Reactor

A facility constructed to initiate and control a sustained nuclear chain reaction, used either to generate electricity or produce radioactive isotopes.