Leonard,Inc

question 22

Multiple Choice

Leonard,Inc.is considering a five-year project that has an initial after-tax outlay or after-tax cost of $70,000.The future after-tax cash inflows from its project for years 1,2,3,4 and 5 are all the same at $35,000.Leonard uses the net present value method and has a discount rate of 10%.Will Leonard accept the project?

• A)Leonard accepts the project because the NPV is about $69,455.
• B)Leonard accepts the project because the NPV is about $62,678.
• C)Leonard rejects the project because the NPV is about -$13,382.
• D)Leonard rejects the project because the NPV is less than -$33,021.

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Definitions:

Endocrine Glands

Glands of the endocrine system that secrete hormones directly into the bloodstream to regulate various bodily functions.

Hormones

Chemical substances produced by glands in the body that regulate the activity of cells or organs, essential for every activity of life.

Endocrine Glands

Glands that secrete hormones directly into the bloodstream, regulating processes like growth, metabolism, and mood.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions by traveling through the bloodstream to tissues or organs.