A Project Will Produce Cash Inflows of $1,750 a Year

question 51

Multiple Choice

A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five,the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13.75%?

• A) -$5,474.76
• B) -$1,011.40
• C) -$935.56
• D) $1,011.40
• E) $5,474.76

---

Definitions:

Television

An electronic device for receiving television broadcasts, consisting of a screen and tuners.

American Indians

Indigenous peoples from the territories that are now within the boundaries of the United States.

African Americans

A term used to describe Americans of African descent, emphasizing their cultural, historical, and social experiences distinct from those of their ancestors on the African continent.

Mexican Americans

A demographic group in the United States with cultural, historical, and familial ties to Mexico.