Majestic Corporation Is Planning a 12 Year Project That Will

question 103

Multiple Choice

Majestic Corporation is planning a 12 year project that will have an initial cost of $900,000.During the first 3 years, there will be cash inflows of $80,000.Years 4-10 will see cash inflows of $350,000.Years 11-12 will see cash outflows of $20,000.If the company's required rate of return is 11%, determine the NPV of the project.

• A)-$175,023
• B)-$25,890
• C)$227,320
• D)$489,366

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Definitions:

Specific

Pertaining to a distinct or particular item, characteristic, or quality, clearly defined or identified.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Materialism

The tendency to consider material possessions and physical comfort as more important than spiritual values.

Ego Needs

Psychological needs related to self-esteem, personal worth, social recognition, and accomplishment.