What Is the NPV of a Project That Costs $100,000

question 41

Multiple Choice

What is the NPV of a project that costs $100,000, provides $23,000 in cash flows annually for six years, requires a $5,000 increase in net working capital, and depreciates the asset straight line over six years while ignoring the half-year convention? The discount rate is 14%.

• A)-$15,561
• B)-$13,283
• C)$13,283
• D)$15,561

Gain knowledge about the components and structure of a biopsychosocial assessment.

Identify the most consistent predictive factors of aggression.

Recognize different phases of the helping process and their functions.

Understand the terminology and definitions specific to gastrointestinal anatomy and conditions.

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Definitions:

Economies of Scale

The reduction in per-unit production costs that occurs when companies grow their scale of operation, demonstrating how larger operation capacity can lead to cost efficiencies.

Price Ceiling

A government-imposed limit on the price charged for a product, intended to prevent prices from rising to levels that are deemed unaffordable or exploitative.

Fair Rate of Return

An acceptable profit level for an investor or entrepreneur, typically established by regulatory agencies for monopolies or utilities.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread over units decrease with increased production.