Dweller, Inc

question 15

Multiple Choice

Dweller, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project?

• A) Dweller accepts the project because the NPV is greater than $30,000.
• B) Dweller rejects the project because the NPV is less than -$4,000.
• C) Dweller rejects the project because the NPV is -$3,021.
• D) Dweller accepts the project because the NPV is greater than $28,000.

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Definitions:

Predictability

The degree to which future events or behaviors can be anticipated based on current knowledge or past experience.

Stability

The quality of being resistant to change, disruption, or deterioration, often used to describe systems or relationships.

Adapt And Grow

The ability to adjust to new conditions or challenges and use them as opportunities for personal development and improvement.

Qualitative Changes

Shifts or transformations in the nature, form, or category of phenomena, rather than merely in amount or size.