Use the Information for the Question(s)below

question 19

Multiple Choice

Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard.Development will take Boulderado four years and cost $250,000 per year,with the first of the four equal investments payable today upon acceptance of the project.Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years.Boulderado's discount rate is 10%.
-The NPV for Boulderado's snowboard project is closest to:

• A)$228,900.
• B)$46,900.
• C)$51,600.
• D)$23,800.

---

Definitions:

Organising Function

A management task involving the arrangement of resources and tasks to achieve objectives efficiently.

Mechanistic Design

An organizational structure characterized by a rigid hierarchy, high degrees of formalization and standardization, and a narrow span of control.

Narrow Spans of Control

A management structure where each manager oversees a small number of subordinates, leading to closer supervision and communication.

Specialised Tasks

Activities that require specific skills or knowledge, often focusing on a particular aspect of a job or process within an organization.