Geronimo, Inc

question 65

Multiple Choice

Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?

• A) Geronimo accepts the project because the NPV is greater than $10,000.00.
• B) Geronimo rejects the project because the NPV is about -$22,375.73.
• C) Geronimo rejects the project because the NPV is about -$12,375.60.
• D) Geronimo rejects the project because the NPV is about -$2,375.60.

---

Definitions:

Personal Attacks

Hostile or negative criticisms directed towards an individual, which are often irrelevant to the subject at hand and intended to undermine or demean.

Problem Resolution

The process of solving a problem or dispute through systematic analysis, discussion, and negotiation.

Stereotypes

Preconceived and oversimplified beliefs about the characteristics of a particular group of people, often leading to prejudicial attitudes and behaviors.

Conflict Cycle

A recurring pattern of conflict arising, escalating, potentially being managed, and then starting over again within an organization or between individuals.