A Proposed Project Requires an Initial Cash Outlay of $49,000

question 6

Multiple Choice

A proposed project requires an initial cash outlay of $49,000 for equipment and an additional cash outlay of $18,700 in Year 1 to cover.operating costs.During Years 2 through 4,the project will generate cash inflows of $42,500 a year.What is the net present value of this.project at a discount rate of 11.6 percent?

• A)$26,343.72
• B)$26,391.08
• C)$25,810.33
• D)$24,399.99
• E)$23,602.18

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Definitions:

Reasonably Foreseeable

A legal standard used to determine if a person could predict or expect a certain outcome as a result of their actions.

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Intentional and typically harmful acts committed using a computer or the internet.

Physical Well-Being

The condition of an individual’s body, including health, fitness, and overall physical condition.

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A state or situation in which something is flawed or lacking in required standards, thus posing potential risk or harm.