Assume a 5-Year Project Has a Base-Case NPV of $213,000

question 61

Multiple Choice

Assume a 5-year project has a base-case NPV of $213,000, a tax rate of 34%, and a cost of capital of 14%. What will be the worst-case NPV if the annual cash flows are reduced in that scenario by $35,000 for each of the 5 years?

• A) -$92,842.17
• B) -$120,157.83
• C) $92,842.17
• D)$120,157.83

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Definitions:

Macro-level Interventions

Strategies or actions aimed at influencing large-scale social structures and processes.

Whole Picture

A term referring to a comprehensive view or complete understanding of a situation or system, taking into account all influencing factors.

Lives of People

Pertains to the experiences, events, and circumstances that constitute human existence and societal interactions.

Principles of Social Work

The foundational guidelines that govern the practice of social work, emphasizing respect for the dignity and worth of the individual, social justice, and professional integrity.