A Project Will Produce Cash Inflows of $5,400 a Year

question 79

Multiple Choice

A project will produce cash inflows of $5,400 a year for 3 years with a final cash inflow of $2,400 in Year 4. The project's initial cost is $13,400. What is the net present value if the required rate of return is 14.2 percent?

• A) −$311.02
• B) $505.92
• C) −$165.11
• D) $218.98
• E) $668.02

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Definitions:

Conflict Theory

A theoretical framework that views society as characterized by inequalities and conflicts that produce social change.

Political Decision Making

The process of making decisions that pertain to governance, policy-making, and implementation within a political context.

Economic Decision Making

The process of choosing among alternatives to maximize benefits and minimize costs in financial matters.

Instrumental Role

The breadwinner role of the father or husband who provides food and shelter for the family.