Project B Has a Cost of $23 956 and Its

question 9

Multiple Choice

Project B has a cost of $23 956 and its expected net cash flows are $6000 p.a.for the next five years.If the required rate of return is 10%,what is the net present value of the project?

• A)$12 674.60
• B)$1211.80
• C)($1950.77)
• D)($1211.80)

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Definitions:

Natural Gas

A fossil fuel consisting mainly of methane, used as a source of energy for heating, cooking, and electricity generation.

Ethanol

A volatile, flammable, colorless liquid commonly used as a biofuel and as the principal type of alcohol found in alcoholic beverages.

Corn

A cereal grain which serves as a staple food in many parts of the world, also used as feed for livestock and for various industrial applications.

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