If the Net Present Value of a Project Is −$10,000

question 20

Multiple Choice

If the net present value of a project is −$10,000, and the net present value of leasing for the project is +$12,000, calculate the APV (adjusted present value) of the project.

• A)−$2,000
• B)$2,000
• C)$12,000
• D)−$10,000

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Definitions:

Cost Center

A department or unit within a business that does not directly generate revenue, but incurs costs for the company, typically evaluated on its cost efficiency.

Department Manager

An individual responsible for overseeing a specific department within a company and managing its resources and staff.

Authority

The power or right to make decisions, give orders, and enforce obedience.

Primary Accounting Tool

Essential financial management and reporting software or methodologies used by businesses to track, analyze, and report financial transactions and performance.