A Project Initially Costs $40,500 and Will Not Produce Any

question 26

Multiple Choice

A project initially costs $40,500 and will not produce any cash flows for the first 2 years.Starting in Year 3,it will produce cash flows of $34,500 a year for 2 years.In Year 6,the project will end and should produce a final cash inflow of $12,000.What is the net present value of this project if the required rate of return is 18.5 percent?

• A)$2,474.76
• B)$2,063.19
• C)$1,935.56
• D)$1,865.95
• E)$2,647.76

---

Definitions:

Achievement Motivation

The drive to pursue and attain goals, an intrinsic desire to achieve set objectives and excel, often pushing individuals to overcome challenges and succeed.

Financial Success

The achievement of financial prosperity, goals, or the accumulation of wealth over time.

Emotional Well-Being

The overall state of one's emotional health and happiness, encompassing a sense of contentment and the ability to manage stress.

Ghrelin

A hormone produced by the stomach that stimulates appetite and signals the body to consume food.