Red Lake Mines, Inc

question 61

Multiple Choice

Red Lake Mines, Inc.is considering adoption of a new project requiring a net investment of $10 million.The project is expected to generate 5 years of net cash inflows of $5 million per year.In the project's sixth, and final year, it is expected to have a net cash outflow of $1 million.What is the project's net present value, using a discount rate of 12 percent?

• A)about $8.52 million
• B)about $8.00 million
• C)about $7.52 million
• D)none of these

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Definitions:

Leadership Substitutes

Factors in a workplace that reduce the need for a leader or make traditional leadership ineffective.

Unnecessary

Not needed or essential; something that could be omitted without any loss of functionality or value.

Romance Of Leadership

A theory suggesting that people have a tendency to attribute organizational success to the actions and decisions of leaders, often overlooking external factors and the contributions of others.

Overestimate

To assess a value, quantity, or importance of something as greater than its actual reality, leading potentially to miscalculation or error.