Using the Constant Chain of Replacement in Perpetuity Method,calculate the Net

question 6

Multiple Choice

Using the constant chain of replacement in perpetuity method,calculate the net present value of a project with the following cash flows:
Assume the cost of capital is 10% p.a.

• A)$38,159
• B)$153,444
• C)$381,596
• D)$148,308

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Reward Strategy

A plan designed by an organization to motivate employees by recognizing their work through financial and non-financial rewards.

Organization Members

Individuals who are formally associated with an organization and contribute to its goals, including employees, managers, and stakeholders.

Rewards

Benefits, monetary or non-monetary, given to individuals or groups as recognition for their efforts, performance, or achievements.