The Following Data Pertain to an Investment What Is the Net Present Value of the Proposed Investment

question 42

Multiple Choice

The following data pertain to an investment: $\begin{array} { l r } \text { Cost of the Investment } & \$ 18,955 \\\text { Life of the Project } & 5 \text { years } \\\text { Annual Cost Savings } & \$ 5,000 \\\text { Estimated Salvage Value } & \$ 1,000 \\\text { Discount Rate } & 10 \%\end{array}$ What is the net present value of the proposed investment? (Ignore income taxes in this problem.)

• A) ($3,430).
• B) $0.
• C) $621.
• D) $3,355.

---

Definitions:

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

Quality Goals

Targets set to achieve a specific standard of quality in products or services, often aligned with customer expectations and regulatory requirements.

Project Manager

A professional responsible for planning, executing, and closing projects, ensuring they meet the predefined objectives.

Critical Path

The computed longest time path(s) through a network.