Ajax Corporation Is Planning a 10 Year Project That Will

question 18

Multiple Choice

Ajax Corporation is planning a 10 year project that will have an initial cost of $500,000.During the first 2 years, there will be cash outflows of $40,000.Years 3-6 will see cash inflows of $120,000.Years 7-10 will see cash inflows of $200,000.If the company's required rate of return is 9%, determine the NPV of the project.

• A)$143,200
• B)$225,650
• C)$375,800
• D)$500,000

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Definitions:

Workplace representation

The act of employees selecting individuals or bodies (such as unions or committees) to represent their interests and concerns to management.

France

A country in Western Europe known for its history, culture, and significant influence in art, science, and politics.

U.S.

The United States of America, a country in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Collective bargaining

The process in which employers and unions negotiate terms of employment, including wages, hours, and working conditions, for a group of employees.