A Project Costs $30,000 and Is Expected to Return $36,000

question 29

Multiple Choice

A project costs $30,000 and is expected to return $36,000 next year. One-year taxable bonds of similar risk are yielding 10% while similar-risk munis are yielding 8%. Your marginal tax rate
Is 30%. What is the NPV of this project? Round your answer to the nearest dollar

• A)$1,091
• B)$2,386
• C)$1,963
• D)$1,667

---

Definitions:

Developing

A term often used to describe countries or regions with a lower level of industrialization, economic development, and lower standard of living compared to more developed countries.

Traditional Civil Rights Organizations

Groups and organizations that have historically worked towards the legal recognition and protection of the civil rights of individuals, particularly marginalized communities.

Legal Segregation

The enforced separation of different racial groups within a country, community, or establishment by law, historically prominent in the United States as Jim Crow laws.

American Indian Movement

A grassroots movement founded in 1968 focused on civil rights for Native Americans, aiming to address issues of sovereignty, treaty rights, and cultural preservation.