A Project Will Produce Cash Inflows of $2,800 a Year

question 18

Multiple Choice

A project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5.The project's initial cost is $9,500.What is the net present value of this project if the required rate of return is 16 percent?

• A)-$311.02
• B)$1,048.75
• C)$4,650.11
• D)$9,188.98
• E)$11,168.02

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Definitions:

Output

The aggregate output of goods or services from a firm, industry, or the economy as a whole.

Academic Probation

A warning status given to students whose academic performance falls below an institution's requirement.

Managerial Decision

A choice made by managers that determines the direction or action taken by an organization on various issues.

Grade Point Average

A numeric calculation representing the average value of the accumulated final grades earned in courses over time, typically on a scale from 0 to 4.0.