Calculate the NPV for a Project with an Initial Outflow

question 76

Multiple Choice

Calculate the NPV for a project with an initial outflow of $12,000 followed an inflow of $6,000 year 1, $4,500 in year 2, $2,500 in year 3 and $1,000 in year 4 at a cost of capital of 6%.

• A)$12,556.50
• B)-$556.50
• C)-$12,556.50
• D)​$556.95

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Definitions:

Cost Effectiveness

A measure of how economically resources are used to achieve a goal, ensuring minimal waste of effort and expense.

Emotional Damage

Psychological harm caused by experiences that lead to emotional distress and mental suffering.

In-Group

A social group to which a person psychologically identifies as being a member.