Use the Information for the Question(s)below

question 89

Multiple Choice

Use the information for the question(s) below.
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy,with each outcome being equally likely.The initial investment required for the project is $80,000,and the project's cost of capital is 15%.The risk-free interest rate is 5%.
-The NPV for this project is closest to:

• A)$6250.
• B)$14,100.
• C)$10,000.
• D)$18,600.

---

Definitions:

U.S. Army

A branch of the United States Armed Forces responsible for land-based military operations.

Control Orientation

An individual's inclination towards exercising control or influence over their environment and situations.

Focus of Attention

Refers to the specific interests or activities that an individual or organization prioritizes and concentrates on.

Organizational Culture

The shared values, beliefs, norms, and practices that characterise an organisation, influencing its members' behavior and contributing to the unique social and psychological environment of the organization.