What Is the NPV for the Following Project If Its

question 52

Multiple Choice

What is the NPV for the following project if its cost of capital is 12% and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and ($1,300,000) in year 4?

• A)($1,494,336)
• B)$1,494,336
• C)greater than zero
• D)two of the above

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Definitions:

Resource Influence

The impact that the availability, quality, and management of natural resources have on an economy's development and performance.

Substitute Resources

Resources or goods that can replace each other in use, providing alternatives for consumers or producers when prices rise or supply diminishes.

Productivity

The measure of efficiency in converting inputs into useful outputs.

Assembly Line Worker

An individual who participates in a manufacturing process wherein each worker repeats one specific task to contribute to the production of a final product.