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:

Project Teams

Groups of individuals brought together to work on a specific project, with a defined goal and timeline, often cross-functional and multidisciplinary in nature.

Permanent Nature

The intrinsic and enduring characteristics of something, implying that it remains unchanged over time.

Supplier Strategic Alliances

Partnerships formed between companies and their suppliers to achieve strategic goals, enhance competitiveness, and secure supply chains.

Preferred Supplier-Customer Relationships

Business arrangements where mutual benefits are derived from long-term associations between suppliers and their key customers, often characterized by trust and cooperation.