Molly Is Considering a Project with Cash Inflows of $918,$867,$528,and

question 12

Multiple Choice

Molly is considering a project with cash inflows of $918,$867,$528,and $310 over the next four years,respectively.The relevant discount rate is 10 percent.What is the net present value of this project if it the start-up cost is $2,100?

• A)$59.50
• B)$131.83
• C)$148.08
• D)$210.45
• E)$229.50

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Definitions:

Negotiated

Involves parties coming together to discuss and settle on the terms of an agreement, contract, or settlement through dialogue and compromise.

Notice

A formal communication or announcement, often legal in nature, that informs a person or entity about an action, decision, or condition that affects their rights or duties.

Holder in Due Course

A legal term for someone who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original payee.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time, with the payee able to transfer it to another holder.