A Project Costs $91,000 Today and Is Expected to Generate

question 99

Multiple Choice

A project costs $91,000 today and is expected to generate cash flows of $11,000 per year for the next 20 years. The firm has a cost of capital of 8%. Should this project be accepted, and why?

• A) Yes, the project should be accepted since it has a NPV = $15,391.23.
• B) Yes, the project should be accepted since it has a NPV = $13,610.89.
• C) Yes, the project should be accepted since it has a NPV = $16,999.62.
• D) None of these answers is correct.

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Definitions:

Longissimus Capitis

A muscle in the human body that extends from the upper vertebrae to the skull, aiding in head movement and extension of the vertebral column.

Interspinales

refer to small muscles situated between the spinous processes of the vertebral column, primarily involved in the extension and rotation of the spine.

Multifidus

A series of small muscles that run along the vertebral column, providing stability and supporting spinal movements.

Serratus Anterior

A muscle that originates on the surface of the upper eight or nine ribs and inserts along the entire anterior length of the medial border of the scapula, playing a key role in the movement of the shoulder blade.