Adler Enterprises Is Considering a Project That Has the Following

question 7

Multiple Choice

Adler Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? $\begin{array}{cccc} \text { WACC } &10.00 \% \\ \text { Year: } & 0 & 1 & 2 & 3 \\\hline \text {Cash flows: } &-\$ 1,000 & \$ 450 & \$ 460 & \$ 470\end{array}$

• A)$142.37
• B)$149.49
• C)$156.97
• D)$164.82

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Definitions:

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces its price but not the total market capitalization.

Total Market Value

The aggregate value of a company or an asset in the marketplace, based on current prices and the total number of shares or units outstanding.

Stock Split

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Shares Outstanding

The cumulative amount of a company's shares that have been approved, distributed, and acquired by shareholders and currently possessed by them.