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:

Social Philosophy

A branch of philosophy that deals with the study of society and its institutions, addressing questions about justice, rights, and the nature of social relations.

Unequal

Imbalanced or unfairly distributed, often referring to situations where resources, power, or opportunities are not distributed evenly among individuals or groups.

Equal

Having the same value, measure, or quantity as another object or condition.

Plato

An eminent figure in philosophy, whose work laid the foundations for Western philosophical thought, emphasizing forms, ethics, and political theory.