You Are Considering a Project with the Following Cash Flows

question 40

Multiple Choice

You are considering a project with the following cash flows: What is the present value of these cash flows,given a 9% discount rate?

• A) $4,713.62
• B) $4,855.27
• C) $5,103.18
• D) $5,292.25
• E) $6,853.61

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Definitions:

Net Decrease

A reduction in the quantity or value of something, calculated by subtracting the final figure from the initial figure.

Inventories

Quantities of goods that are held by a company for the purpose of resale or production.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to arrive at operating cash flow.

Accounts Receivable

Funds that clients or customers owe to a company for products or services delivered but not yet compensated for.