A Project Costs $12,800 and Is Expected to Provide a Real

question 97

Multiple Choice

A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5.Calculate the net present value of this project if inflation is expected to be 4% in each year and the firm employs a nominal discount rate of 10.76%.

• A) $33,522.30
• B) $28,756.79
• C) $33,294.07
• D) $26,311.15

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Definitions:

Virtual Organization

A business model characterized by a network of remote collaborations and communications among individuals or groups, enabled by digital technologies, without a centralized physical office.

Strategic Control

The process of monitoring and assessing the suitability of a strategy against the organizational goals and making necessary adjustments.

Modular Organization

Refers to an organizational structure that is divided into separate, interchangeable units or modules, each with a specific function.

Core Competencies

are the unique capabilities or advantages that give an organization a competitive edge in the market or industry.