Empire Industries Is Considering Adding a New Product to Its

question 49

Multiple Choice

Empire Industries is considering adding a new product to its lineup.This product is expected to generate sales for four years after which time the product will be discontinued.What is the project's net present value if the firm wants to earn a 13 percent rate of return?

• A)$3,505.52
• B)$3,767.24
• C)$4,312.65
• D)$4,519.58
• E)$4,902.71

---

Definitions:

Economic Profit

The gap between an organization's overall income and all its expenditures, encompassing overt and hidden costs.

Maximum Earning

The highest income that an individual or entity can generate under specific conditions or within a given period.

Entrepreneurial Judgment

Entrepreneurial judgment is the decision-making skill entrepreneurs exhibit in identifying, evaluating, and capitalizing on opportunities to create value.

Business Decisions

Choices made by businesses that affect its operations, strategy, and financial performance.