A Project Has the Following Cash Flows: C₀ = -100,000;

question 70

Multiple Choice

A project has the following cash flows: C₀ = -100,000; C₁ = 50,000; C₂ = 150,000; C₃ = 100,000.If the discount rate changes from 12 percent to 15 percent, what is the change in the NPV of the project (approximately) ?

• A)12,750 increase
• B)12,750 decrease
• C)14,240 increase
• D)14,240 decrease

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a given time period.

Agriculture Production

Refers to the process of producing food, fiber, and other desired products by the cultivation of certain plants and the raising of domesticated animals (livestock).

Remittances

amounts of money sent by migrants to their home country, often serving as a significant source of family and national income in many countries.

Investment Capital

Funds invested in a project, company, or any asset with the expectation of generating a future return.