A Proposed 3-Year Project Has Expected Annual Cash Inflows of $5,600,$7,900,and

question 60

Multiple Choice

A proposed 3-year project has expected annual cash inflows of $5,600,$7,900,and $11,200,for Years 1 to 3,respectively.What is the net present value of this project at a discount rate of 16 percent if the initial cost is $7,800?

• A)$10,713.62
• B)$10,073.94
• C)$14,103.18
• D)$12,292.25
• E)$9,899.36

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Definitions:

Flexibility

The ability to adapt or adjust to new conditions, changes, or environments.

Extrinsic Rewards

Motivators external to the job itself, such as salary, benefits, and recognition, that influence an individual’s performance.

Valence Rewards

The perceived desirability of an outcome, motivating individuals to act in a certain way.

Employee-Of-The-Month

A recognition program in which an employee is honored for outstanding performance, contribution, or attitude over a specified period.