The Net Present Value of a Project's Cash Inflows Is

question 86

Multiple Choice

The net present value of a project's cash inflows is $8,216 at a 14 percent discount rate.The profitability index is 1.03 and the firm's tax rate is 34 percent.What is the initial cost of the project?

• A)$6,900.00
• B)$7,018.50
• C)$7,428.32
• D)$7,976.70
• E)$8,066.67

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Definitions:

Product Innovation

The process of developing and introducing new or significantly improved goods or services to meet customer needs or market demands.

Quality of Work Life

Refers to the degree to which individuals are able to satisfy their important personal needs while employed by an organization.

Environmental Concerns

Issues related to the protection of the natural environment due to pollution, depletion of resources, and loss of biodiversity.

Core Culture

The fundamental beliefs, values, and practices that are central and intrinsic to an organization or group, shaping its identity and ways of operating.