Scott Enterprises Is Considering a Project That Has the Following

question 27

Multiple Choice

Scott Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? Note that if a project's expected NPV is negative,it should be rejected. $\begin{array}{lccccc}\text { WACC: } & 11.00 \% \\\text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash flows } & -\$ 1,000 & \$ 350 & \$ 350 & \$ 350 & \$ 350\end{array}$

• A) $77.49
• B) $81.56
• C) $85.86
• D) $90.15
• E) $94.66

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Definitions:

Formal Operational Stage

A developmental phase, identified by Jean Piaget, where individuals (starting in adolescence) develop the ability to think abstractly and logically.

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development (approximately ages 2 to 7) where children begin to use language and think symbolically, yet their thinking is still intuitive and egocentric.

Private Speech

Verbal communication directed at oneself for the purposes of self-guidance or self-regulation, often observed in children as part of their cognitive development.

Self-regulation

The ability to manage one's own emotions, thoughts, and behaviors in different situations effectively.