The Initial Cost of a Project Is $10,000

question 54

Multiple Choice

The initial cost of a project is $10,000.  There is a 30% chance that it will be highly successful, in which case cash inflows of $4,500 are expected for the next four years.  There is a 70% chance that the project will be unsuccessful, in which case annual cash inflows of $3,200 are expected for four years.  The cost of capital is 12%.  What is the project's expected NPV?

• A)$3,688
• B)($281)
• C)$7,700
• D)$904

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Single Project

A single project refers to an undertaking designed to achieve a particular objective within a specified timeframe, typically involving a defined set of resources and tasks.

Co-ownership

A legal arrangement where two or more parties hold property together, sharing rights and responsibilities.

Sharing Management

An approach or strategy involving multiple stakeholders collaborating in the governance, administration, or operations of an entity or project.