Project Target Will Cost the Dart Corporation $65,000

question 7

Multiple Choice

Project Target will cost the Dart Corporation $65,000. It is expected to produce net cash flows of $15,000 a year for 10 years. The required return on the project is 8%. What is its net present
Value, to the nearest dollar?

• A)$4,479
• B)$85,000
• C)$73,889
• D)$35,651

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Definitions:

Castration

The removal of the testicles in males or ovaries in females, which drastically reduces hormone production, affecting reproduction and secondary sexual characteristics.

Hans Selye

A pioneering Hungarian endocrinologist who identified the stress response as having three stages: alarm, resistance, and exhaustion.

Stress

The body's response to any demand or challenge, ranging from minor daily pressures to major life events, which can affect mental and physical health.

Warm Climate

A warm climate is characterized by high average temperatures and often includes tropical and subtropical zones.