A Project Anticipates Net Cash Flows of $10,000 at the End

question 104

Multiple Choice

A project anticipates net cash flows of $10,000 at the end of year one, with such amount growing at the expected 5 percent rate of inflation over the subsequent four years.Calculate the real present value of this five-year cash stream if the firm employs a nominal discount rate of 15 percent.

• A)$33,522
• B)$38,377
• C)$43,294
• D)$55,000

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Definitions:

Inferior Member

In a group setting, it refers to a member perceived or deemed to be of lesser skill, contribution, or value compared to others within the group.

Group Productivity

The measure of the output or performance level of a group working together towards common objectives.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group and seeks to reduce the influence of dominant individuals.

Evaluation Apprehension

The fear or anxiety about being judged by others, which can affect performance and behavior in social situations.