Benny's Is Considering Adding a New Product to Its Lineup

question 114

Multiple Choice

Benny's 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 14 percent rate of return?

• A) $2,336.29
• B) $2,511.49
• C) $2,874.21
• D) $3,013.05
• E) $3,268.47

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Definitions:

False Negative

An error in which a test fails to detect a presence that is actually there.

Thought-Activated Software

Software systems that operate based on users' thoughts or brain signals, often requiring neural interfacing technology.

Voice-Activated Software

Computer applications or systems that are controlled through vocal commands rather than traditional manual inputs.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.