What Is the Net Present Value of a Project That

question 147

Multiple Choice

What is the net present value of a project that requires an initial investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the discount rate is 15 percent.

• A)$91,520
• B)$15,520
• C)$78,000
• D)$167,474

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Definitions:

Writ of Execution

A court order granting the right to enforce judgment, typically by seizing and selling the debtor's property to satisfy a debt.

Garnishment

A legal process whereby a creditor can collect what a debtor owes by requiring a third party to turn over the debtor's assets under their control.

Limited Jurisdiction

A court's authority to hear only certain types of cases, often defined by law, subject matter, or monetary value.

Appellate Courts

Courts that review and revise the outcome of cases previously decided by lower courts if an error in the application of the law is claimed.