A Project Anticipates Net Cash Inflows of $10,000 at the End

question 36

Multiple Choice

A project anticipates net cash inflows of $10,000 at the end of year 1, with that amount increasing at the expected 4% rate of inflation over the subsequent 4 years. The initial project cost is $12,800. Calculate the real present value of this 5-year cash stream if the firm employs a nominal discount rate of 10.76%.

• A) $33,522.30
• B) $28,756.79
• C) $33,294.07
• D)$26,311.15

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Definitions:

Paraphilic Disorder

Disorder characterized by atypical sexual activity that involves one of the following: (1) nonhuman objects, (2) nonconsenting adults, (3) the suffering or humiliation of oneself or one’s partner, or (4) children.

Hypersexual Disorder

A proposed disorder characterized by excessive preoccupation with sexual fantasies, urges, or behaviors that is not currently recognized in the main diagnostic manuals.

Diagnosis

The process of identifying and naming a disease or condition based on its symptoms and test results.

Frotteurism

A paraphilic interest focusing on touching or rubbing against a non-consenting person, typically in crowded places.