Assume the NPV of a Project Is $1

question 63

Multiple Choice

Assume the NPV of a project is $1.5 million.The project is expected to last five years.What is the equivalent annual benefit if the discount rate is 8%?

• A)$375,685
• B)$300,000
• C)$347,856
• D)$324,000

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Definitions:

Thalidomide

A sedative linked to birth defects, especially deformed or absent limbs.

BMI

Body Mass Index, a measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.

Pregnancy

The condition of carrying one or more embryos or fetuses in the womb, typically lasting about nine months in humans.

Weight Gain

An increase in body weight. This can be a result of muscle mass increase, fat deposits, or fluid retention.