Assume the NPV of a Project Is $1

question 63

Multiple Choice

Assume the NPV of a project is $1.5 million.The project is expected to last five years.What is the equivalent annual benefit if the discount rate is 8%?

• A)$375,685
• B)$300,000
• C)$347,856
• D)$324,000

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Definitions:

Trading Debt Securities

Refers to the buying and selling of debt securities, such as bonds, in the financial market for short-term profit.

Long-term Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year, such as real estate or equipment.

Exchange Rate

The price of one currency expressed in terms of another currency, determining how much of one currency can be exchanged for another.

Canadian Dollars

The official currency of Canada, represented by the symbol CAD.