Kinetics Is Considering a Project That Has a NINV of $874,000

question 1

Multiple Choice

Kinetics is considering a project that has a NINV of $874,000 and generates net cash flows of $170,000 per year for 12 years. What is the NPV of this project if Kinetics cost of capital is 14%?

• A) $252,760
• B) $110,840
• C) $88,200
• D) $47,570

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Definitions:

Inferiority Feelings

Emotions or sensations of being lesser or inadequate compared to others, which can impact self-esteem and motivate compensatory actions or overcompensations.

Genetically Determined

Something that is genetically determined is influenced or controlled by genes and inherited from one's parents.

Overbearing Parents

Parents who exert excessive control over their children's lives, often leading to a lack of independence and self-efficacy in the child.

Compensation

A defense mechanism where individuals overachieve in one area to make up for deficiencies in another.