Consider a Five-Year Project That Costs $20,000 Today, Which Is

question 93

Multiple Choice

Consider a five-year project that costs $20,000 today, which is expected to generate $6,000 at the end of the second year and then the cash flows will increase by $1,000 per year for each of the remaining years.The cost of capital is 8%.What are the NPV and IRR for this project?

• A)NPV = $1,083.24; IRR = 8.96%
• B)NPV = $2,706.35; IRR = 11.93%
• C)NPV = $3,824.56; IRR = 14.87%
• D)NPV = $4,522.85: IRR = 17.09%

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Definitions:

Language Development

Language development entails the process by which children come to understand and communicate language during early childhood.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express thoughts, feelings, or ideas to someone else.

Two Years

A period of time equivalent to twenty-four months or 730 days, often significant in development and various legal or formal timelines.

Vygotsky

A psychologist who proposed the sociocultural theory, emphasizing the influence of social interaction, language, and culture on cognitive development.