What Is the NPV of a Project That Costs $100,000

question 43

Multiple Choice

What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%?

• A) $13,397.57
• B) $14,473.44
• C) $16,081.60
• D) $33,748.58

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Definitions:

Fiduciary Duty

The obligation to act in the best interest of another party, such as a trustee's duty towards the beneficiaries of the trust.

ULPA of 2001

The Uniform Limited Partnership Act of 2001 is legislation that provides updated guidelines and regulations for the formation, operation, and dissolution of limited partnerships in the United States.

Transfer of interest

The process of assigning or transferring one’s legal rights or stake in a property or entity to another.

Limited Partnership Agreement

A contract among partners of a limited partnership defining the partnership's terms, structure, and operations.