A Project Is Expected to Create Operating Cash Flows of $37,600

question 15

Multiple Choice

A project is expected to create operating cash flows of $37,600 a year for 3 years.The initial cost of the fixed assets is $98,000.These assets will be worthless at the end of the project.Also,$3,200 of net working capital will be required throughout the life of the project.What is the project's net present value if the required rate of return is 14 percent?

• A)$11,746.73
• B)$12,011.98
• C)$10,927.87
• D)−$11,746.73
• E)−$12,011.98

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Definitions:

Irritable

A frequent mood characterized by easy annoyance and often resulting in impatient or snappy responses.

Thomas and Chess

Psychologists known for their research in child temperament, particularly in identifying three basic temperaments in infants and how these influence developmental outcomes.

Temperament Types

Categories that describe inherent personality traits and behavioral styles, often identified as part of psychological assessments.

Easy

Something that can be done without difficulty or effort.