What Is the Net Present Value of a Project That

question 31

Multiple Choice

What is the net present value of a project that has an initial cash outflow of £12,670 and the following cash inflows? The required return is 11.5%.
$\begin{array}{|l|l|}\hline \text { Year } & \text { Cash Inflows } \\\hline 1 & £ 4,375 \\\hline 2 & £ 0 \\\hline 3 & £ 8,750 \\\hline 4 & £ 4,100\\\hline\end{array}$

• A)£218.68
• B)£370.16
• C)£768.20
• D)£1,249.65
• E)£1,371.02

Grasp the fundamental principles of opportunity recognition, margin analysis, and transaction analysis in franchising.

Understand the processes and strategies for franchise system growth, including the development of target audiences and marketing programs.

Understand the concept of target audience segmentation in marketing.

Comprehend the core aspects of the Franchise Relationship Model (FRM).

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Definitions:

Revenue Trend Percent

A metric that measures the rate of change in a company's revenue over a specific period, helping to understand growth patterns.

Base Year

A specific year against which economic or financial data is compared over a period of time.

Sales

The exchange of goods or services for money, measuring the primary revenue-generating activities of a business.

Common-size Percent

A technique used in financial analysis where all line items are expressed as a percentage of a common base figure, facilitating comparison between financial periods and companies.