Mr Wills Invested in a Business That Will Generate $75,000

question 14

Multiple Choice

Mr. Wills invested in a business that will generate $75,000 annual after-tax cash flow in years 0 and 1 and $90,000 annual after-tax cash flow in years 2 and 3. Compute the NPV of these cash flows at a 10% discount rate.

• A) $259,185
• B) $277,348
• C) $290,310
• D) None of the above

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Definitions:

Corporate Brand

The overall image and identity of a company as perceived by its customers, including its reputation, product quality, and values.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; encompasses environmental stewardship, ethical labor practices, and philanthropy.

Innovation

The introduction of new ideas, products, or methods, leading to significant changes or improvements in a particular field.

Education

The process of receiving or giving systematic instruction, especially at a school or university.