A Project Has an Initial Cash Outflow of $42,600 and Produces

question 58

Multiple Choice

A project has an initial cash outflow of $42,600 and produces cash inflows of $17,680, $19,920, and $15,670 for Years 1 through 3, respectively. What is the NPV at a discount rate of 12 percent?

• A) $186.95
• B) -$108.19
• C) $219.41
• D) $229.09
• E) $311.16

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Definitions:

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.