A New Project Has an Initial Cost of $125,000 and Cash

question 49

Multiple Choice

A new project has an initial cost of $125,000 and cash flows of $33,300,$78,700,and $69,500 for Years 1 to 3,respectively.What is the net present value (NPV) of this project if the discount rate is 19.3 percent? What is the NPV if the discount rate is 12.7 percent?

• A)$1,127.10;$17,209.11
• B)-$859.11;$17,209.11
• C)-$859.11;$15,062.34
• D)$1,127.10;$17,388.09
• E)-$604.17;$15,062.34

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Definitions:

Internists

Medical doctors specialized in internal medicine, focusing on the diagnosis, treatment, and care of adults across a wide range of conditions and diseases.

Podiatrists

Podiatrists are healthcare professionals specializing in diagnosing, treating, and managing conditions and disorders of the foot, ankle, and lower extremity.

Otorhinolaryngology

A medical specialty focused on the treatment of conditions affecting the ears, nose, and throat (ENT) as well as related structures of the head and neck.

Gastroenterology

The branch of medicine focused on the digestive system and its disorders, including the stomach, intestines, gallbladder, and liver.