Use the Following Information to Answer the Question(s)below

question 77

Multiple Choice

Use the following information to answer the question(s) below.
You are considering investing in a start-up project at a cost of $100,000.You expect the project to return $500,000 to you in seven years.Given the risk of this project,your cost of capital is 20%.
-The NPV for this project is closest to:

• A)$29,200.
• B)$39,500.
• C)$129,200.
• D)$139,500.

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Definitions:

System

An organized set of interrelated components or elements that function together toward a common goal.

Average Time

The mean period taken for a task or process to occur; calculated by summing the total time taken and dividing it by the number of occurrences or instances.

Customers

Individuals or entities that purchase goods or services from a business.

System

A set of interacting or interdependent components forming an integrated whole to serve a common purpose.