The Quick-Start Company Has the Following Pattern of Potential Cash

question 35

Multiple Choice

The Quick-Start Company has the following pattern of potential cash flows for a new project. If the company has a discount rate of 16 percent,what is the Time 1 net present value?

• A)$50,807,953
• B)$48,326,218
• C)$52,009,107
• D)$47,362,515
• E)$45,887,056

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Definitions:

Consuming

The act of using up goods and services to satisfy wants or needs.

Maximizing Utility

The process of choosing the allocation of scarce resources that provides the highest possible satisfaction or happiness to an individual or society.

Marginal Utility

The change in overall satisfaction or utility obtained by consuming one additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of goods and services.