Webster,Inc

question 12

Multiple Choice

Webster,Inc.is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000.The future after-tax cash inflows from its project for years 1 through 8 are the same at $35,000.Webster uses the net present value method and has a discount rate of 12%.Will Webster accept the project?

• A)Webster accepts the project because the NPV is over $10,000.
• B)Webster accepts the project because the NPV is about $6,141.
• C)Webster rejects the project because the NPV is about -$6,133.
• D)Webster rejects the project because the NPV is below -$7,000.

---

Definitions:

Parietal Peritoneum

Layer of peritoneum lining the abdominal walls.

Omental Bursa

A large cavity within the abdomen that is part of the greater omentum and provides a space through which vessels, nerves, and lymphatics pass.

Mesenteries

Folds of peritoneal tissue that attach the intestines to the abdominal wall, containing blood vessels, nerves, and lymphatics to support the intestines and maintain their structure.

Greater Omentum

Peritoneal fold passing from the greater curvature of the stomach to the transverse colon, hanging like an apron in front of the intestines.