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

question 113

Multiple Choice

What is the NPV of a project that costs $100,000 and returns $45,000 annually for three years if the opportunity cost of capital is 14 percent?

• A)$3,397.57
• B)$4,473.44
• C)$16,100.00
• D)$35,000.00

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Price Levels

The average level of prices for goods and services in an economy at a specific point in time.

Temporal Method

A foreign currency translation method used in accounting to convert transactions of foreign operations to the reporting currency.

Swedish Krona

The official currency of Sweden, often represented by the abbreviation SEK.