Frameworks,Inc

question 36

Multiple Choice

Frameworks,Inc.is considering a five-year project that has an initial after-tax outlay or after-tax cost of $80,000.The respective future cash inflows from its project for years 1,2,3,4 and 5 are: $15,000,$25,000,$35,000,$45,000 and $55,000.Frameworks uses the net present value method and has a discount rate of 9%.Will Frameworks accept the project?

• A)Frameworks accepts the project because the NPV is $129,455.25.
• B)Frameworks accepts the project because the NPV is 79,455.25.
• C)Frameworks accepts the project because the NPV is $49,455.25.
• D)Frameworks accepts the project because the NPV is less than zero.

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Definitions:

Realities

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Marital Burnout

The gradual deterioration of love and ultimate loss of an emotional attachment between partners.

Slowly

At a leisurely or reduced pace, allowing for careful progression or appreciation.

Quietly

In a manner that makes little or no noise; silently or softly.