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

question 122

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 at 15 percent declining balance over six years and sold at zero salvage value? The discount rate is 14 percent.The tax rate is 40 percent.

• A)-$23,460
• B)-$13,283
• C)$13,283
• D)$44,866

Understand the roles and objectives of financial auditing.

Recognize the need for and challenges of international accounting standards.

Familiarize with basic concepts and definitions in accounting including assets, liabilities, and owner's equity.

Identify ethical considerations in financial accounting on an international scale.

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Definitions:

Independent Groups

A study design where different participants are used in each group of the experiment, with each participant being exposed to only one level of the experimental manipulation.

Related

A term indicating that two or more variables have some form of association or connection with each other.

Dependent

Referring to a variable in experimental and statistical settings that is expected to change in response to manipulations of another variable.

Continuous

A type of data that can take on any value within a given range and can thus represent subtler variances accurately.