What Is the Net Present Value of a Project with the Following

question 259

Multiple Choice

What is the net present value of a project with the following cash flows if the required rate of return is 14 percent?

• A) ($5,450.09)
• B) ($4,229.91)
• C) ($306.18)
• D) $4,729.09
• E) $9,450.09

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Definitions:

Directional Research Hypothesis

A research hypothesis that posits a difference between groups in one direction.

Nondirectional Research Hypothesis

A research hypothesis that posits a difference between groups but not in either direction. See Directional Research Hypothesis.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption that is tested against.

Error Hypothesis

A statement positing the existence of a difference or effect, used in the context of hypothesis testing to denote a hypothesis that is tested for being in error relative to the null.