Calculate the NPV of a Project Requiring a $3,000 Investment

question 34

Multiple Choice

Calculate the NPV of a project requiring a $3,000 investment followed by an outflow of $500 in Year 1, and inflows of $1,000 in Year 2 and $4,000 in Year 3. The cost of capital is 12%. (Round to nearest $)

• A)$52
• B)$198
• C)$257
• D)$486

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Definitions:

Extracellular

Outside the cell.

Osmotic Pressure

Force required to prevent the movement of water across a selectively permeable membrane.

Na+

A symbol representing sodium ions, which are essential electrolytes in the body, playing key roles in nerve impulse conduction, muscle contraction, and fluid balance.

Plasma

The liquid component of blood in which blood cells are suspended, consisting largely of water, proteins, and dissolved substances.