What Is the NPV of a Project That Costs $100,000

question 33

Multiple Choice

What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%?

• A) $3,397.57
• B) $4,473.44
• C) $16,085.00
• D)$35,000.00

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Definitions:

Bath Sponges

Natural or synthetic sponges used for cleansing the body; natural ones are harvested from the ocean and belong to a simple, multicellular organism group.

Silica

A hard, unreactive, colorless compound that occurs as the mineral quartz and as a principal constituent of sandstone and other rocks.

Calcium Carbonate

A chemical compound used as a dietary supplement or antacid; it's also the main component of limestone.

Spongin

A fibrous protein that makes up the skeleton of many sponges.