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

---

Definitions:

Criterion Deficiency

A situation where the criteria used for evaluating performance do not fully capture or reflect the actual job performance.

Criterion Contamination

Refers to the situation where performance appraisals include factors irrelevant to the employee's actual job performance.

Criterion Relevance

The degree to which a criterion used in evaluating outcomes or performance accurately reflects the essential aspects of a job or objective.

Criterion Deficiency

The part of the expected job performance that is not measured by the performance evaluation system in place.