ZPS Models Is Considering a Project That Has a NINV

question 76

Multiple Choice

ZPS Models is considering a project that has a NINV of $564,000 and generates net cash flows of $105,000 per year for 10 years.What is the NPV of this project if ZPS has a cost of capital of 12.45%?

• A)$47,625
• B)$18,503
• C)$17,490
• D)none of these

---

Definitions:

Outdoor Temperature

The temperature of the air outside, which can be influenced by various weather conditions and time of day.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas.

Reading Skills

Reading skills encompass the abilities involved in the comprehension, interpretation, and analysis of written texts.

Linear Association

A statistical relationship between two variables where a change in one variable is associated with a change in the other variable.