A Certain Project Will Cost a Firm $5,000 Today

question 13

Multiple Choice

A certain project will cost a firm $5,000 today. The project is not expected to produce any cash flows until the second year, at which point it is expected to produce $6,200. No other cash
Flows are anticipated. If the appropriate cost of capital is 15%, what is this project's NPV?
Round your answer to the nearest dollar.

• A)+$391
• B)+$5,836
• C)-$312
• D)-$1,852

---

Definitions:

Management Representatives

Individuals within an organization who are authorized to act on behalf of the management, often in negotiations or organizational decision processes.

Government Representatives

Individuals elected or appointed to act on behalf of the government in legislative, executive, or other official capacities.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Safety Officers

Professionals responsible for ensuring workplace health and safety compliance and implementing preventive measures against accidents.