A Project Has an Initial Cost of $480,000,projected Revenue of $311,500,cash

question 38

Multiple Choice

A project has an initial cost of $480,000,projected revenue of $311,500,cash costs of $214,650,an unlimited life,a tax rate of 21 percent,and a weighted average cost of capital of 13.8 percent.What is the net present value of the project?

• A)$24,411
• B)$115,494
• C)$100,003
• D)$66,497
• E)$74,431

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Definitions:

Genetic Disorder

A condition caused by abnormalities in an individual's DNA, often resulting in disease or variations in development.

Gene Therapy

A medical treatment involving the modification of a person's genes to prevent or treat disease.

Nucleus

The vital body in the protoplasm of a cell.

Metabolic Activities

The chemical processes that occur within a living organism in order to maintain life.