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

question 63

Multiple Choice

What is the net present value of a project with the following cash flows if the required rate of return is 12 percent?

• A)-$1,574.41
• B)-$1,208.19
• C)-$842.12
• D)$729.09
• E)$1,311.16

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, describing how much individual data points differ from the mean.

Sample Mean

The average of a set of numerical values drawn from a sample of a population, used as an estimate of the population mean.

Margin Of Error

The amount of error that can be tolerated in the results of a poll or survey, indicating the potential deviation from the true population parameter.

Confidence Interval

A spectrum of numbers, extracted from sample observations, presumed to hold the value of a not yet identified population characteristic.