At Current Prices and a 13% Cost of Capital,a Project's

question 117

Multiple Choice

At current prices and a 13% cost of capital,a project's NPV is $100,000.By what minimum amount must the initial cost of the project decrease (revenues will be unchanged) before you would wait 2 years to invest?

• A) $21,685
• B) $26,000
• C) $27,690
• D) $29,380

---

Definitions:

Gilman-Based Synthesis

A method in organic chemistry used for forming carbon-carbon bonds using organocopper compounds, particularly useful for coupling reactions.

Pentanal

An organic compound with the formula C5H10O, an aldehyde with a straight-chain of five carbon atoms, known for its strong odor.

Heptan-3-ol

An organic compound, part of the alcohols class, featuring a seven-carbon chain with a hydroxyl group (-OH) attached to the third carbon atom.

Organic Product(s)

Substances derived from living organisms or synthesized to mimic natural compounds, primarily consisting of carbon atoms.