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

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Definitions:

SMART

A technique to set the sales call objectives by making sure the objectives are specific, measurable, achievable, realistic, and timed.

Sales Call Objective

The specific goal or desired outcome of a sales call, such as making a sale, scheduling a meeting, or gathering information.

Predetermined Goals

Objectives or outcomes that have been specifically defined and planned in advance.

Sales Calls

The act of contacting potential customers directly, typically via telephone or in person, to introduce a product or service with the aim of making a sale.