Given the Following Cash Flows for Project A: C₀ =

question 73

Multiple Choice

Given the following cash flows for project A: C₀ = -3,000,C₁ = +500,C₂ = +1,500,and C₃ = +5,000,calculate the NPV of the project using a 15% discount rate.

• A)$5,000
• B)$2,352
• C)$3,201
• D)$1,857

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Definitions:

Finder

A person who discovers something, especially lost or abandoned property, and may have certain legal rights or obligations regarding its custody and disposal.

Original Owner

The first or initial owner of an item or property.

Primarily Contractual

Pertaining mainly to agreements made between parties that are enforceable by law.

Run With The Land

Legal principle indicating that certain rights and obligations attached to a piece of land transfer with the property from one owner to the next.