A Firm Estimates That It Will Receive Cash Flows from a New

question 39

Multiple Choice

A firm estimates that it will receive cash flows from a new product of $25,000 in Year 1, $22,000 in Year 2, and $19,000 in Year 3. If a discount rate of 8% is assumed, what is the NPV of this product's cash flows?

• A) $71,280
• B) $57,092
• C) $66,000
• D) NPV cannot be determined from the information given

---

Definitions:

Bright Colors

Vivid shades that are striking and noticeable due to their intensity and are often associated with attention, safety, and excitement.

Intimate Zone

The physical space immediately surrounding an individual, into which entry implies familiarity and personal interaction.

Public Zone

An area or space accessible to everyone, where individuals interact under the observation of others, often governed by societal norms and regulations.

Secondary

Pertains to the second level or stage, often referring to education or sources that build upon primary information.