What Is the NPV of a Project That Costs $100,000

question 50

Multiple Choice

What is the NPV of a project that costs $100,000, provides $23,000 in cash flows annually for six years, requires a $5,000 increase in net working capital, and depreciates the asset straight line over six years while ignoring the half-year convention? The discount rate is 14%.

• A)-$15,561
• B)-$13,283
• C)$13,283
• D)$15,561 Net Present Value = 23,000

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Definitions:

Capillaries

The smallest blood vessels in the body, responsible for the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances between blood and tissues.

Venules

Small blood vessels that drain blood from capillaries and transport it to larger veins.

Arterioles

Small branches of arteries leading to capillaries, responsible for controlling blood flow and blood pressure by constricting or dilating.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, typically measured to assess heart health and cardiovascular function.