Project XYZ Has a Cost of $200,000 and Provides the Following

question 65

Multiple Choice

Project XYZ has a cost of $200,000 and provides the following annual cash inflows: year 1 $35,000; year 2 $25,000; year 3 $175,000; and year 4 $10,000. What is the net present value of this investment, assuming the discount rate is 8%?

• A) $135
• B) $4,687
• C) $101,050
• D) $200,135

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Definitions:

Allergy

An immune system reaction to a foreign substance (allergens) that is not typically harmful to the body.

Slight Fever

A minor elevation in body temperature, often indicating the presence of an infection or illness.

Muscle Aches

Discomfort or pain within the muscle tissue, often resulting from overexertion, tension, or a physical condition.

Common Cold

A viral infectious disease of the upper respiratory tract characterized by symptoms such as sneezing, sore throat, and runny nose.