What Is the Net Present Value of a Project with the Following

question 48

Multiple Choice

What is the net present value of a project with the following cash flows if the discount rate is 15 percent?

• A)$39.80
• B)$42.97
• C)$44.16
• D)$48.21
• E)$48.30

---

Definitions:

Property, Plant & Equipment

Tangible long-lived assets owned by a business for the purpose of producing goods or services and not intended for sale during the normal course of business.

Land Improvements

Enhancements made to a parcel of land to increase its value or utility, such as landscaping, fencing, or installing utilities, which are capitalized and depreciated over time.

Lease Improvements

These are modifications made to rental premises in order to tailor the space to the needs of the tenant.

Straight-Line Method

A method of allocating an asset's cost evenly over its useful life, commonly used in depreciation and amortization calculations.