A New Project Has an Initial Cost of $125,000 and Cash

question 56

Multiple Choice

A new project has an initial cost of $125,000 and cash flows of $33,300,$78,700,and $69,500 for Years 1 to 3,respectively.What is the net present value (NPV) of this project if the discount rate is 19.3 percent? What is the NPV if the discount rate is 12.7 percent?

• A)$1,127.10; $17,209.11
• B)-$859.11; $17,209.11
• C)-$859.11; $15,062.34
• D)$1,127.10; $17,388.09
• E)-$604.17; $15,062.34

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Definitions:

Cognitive

Relating to mental processes involved in perception, memory, judgment, and reasoning.

Dispositional Patterns

Enduring characteristics and behaviors that individuals consistently demonstrate across different situations.

Social-emotional Functioning

Refers to an individual's ability to process and manage emotional and interpersonal aspects of experience effectively.

Social Psychology

The scientific study of how individuals think, feel, and behave in social contexts.