TABLE 16.1 Use the Information to Answer the Following Question(s)

question 8

Multiple Choice

TABLE 16.1
Use the information to answer the following question(s) .
Jensen Aquatics Inc., which manufactures and sells scuba gear worldwide, is considering an investment in either Europe or Great Britain. Consider the following cash flows for each project, assume a 12% wacc, and consider these to be average risk projects for the firm. Answer the questions that follow.

-Refer to Table 16.1.The NPV for the European investment is estimated at ________.

• A)euro 4,945
• B)$4,945
• C)$6,420
• D)euro 6,420

---

Definitions:

Parametric Analysis

A type of analysis where the data is assumed to fit a certain distribution or parameters, such as the normal distribution.

Nonparametric Methods

Statistical methods that are not based on parameterized families of probability distributions, used when data doesn't fit the assumptions of parametric methods.

Functioning Time

The period which a system or device is operational and performs its intended function without failure.

Kruskal-Wallis Test

A non-parametric test that is utilized to ascertain if statistically meaningful differences exist among two or more categories of an independent variable concerning a continuous or ordinal dependent variable.