A Proposed Project Requires an Initial Cash Outlay of $849,000

question 13

Multiple Choice

A proposed project requires an initial cash outlay of $849,000 for equipment and an additional cash outlay of $48,500 in year 1 to cover operating costs.During years 2 through 4,the project will generate cash inflows of $354,000 a year.What is the net present value of this project at a discount rate of 13 percent? Round your answer to the nearest whole dollar.

• A)-$152,232
• B)-$66,391
• C)$67,333
• D)$128,612
• E)$239,602

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Definitions:

Dell Computer

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Value-Chain Analysis

An analysis that identifies the primary and support activities that add value to a business's products or services.

Supply-Chain Management

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