A Certain Investment Will Require an Immediate Cash Outflow of $3

question 83

Multiple Choice

A certain investment will require an immediate cash outflow of $3 million.At the end of each of the next three years,the investment will generate cash inflows of $1.3 million.If the discount rate is 10%,what is the project's NPV?

• A) $211,734
• B) -$303,886
• C) $232,908
• D) -$276,260

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Definitions:

Stapes

A small bone in the middle ear that plays a key role in the process of hearing by transmitting sound vibrations to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, contributing to the sense of hearing.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea in the inner ear, vital for the process of hearing.

Ossicles

The three small bones located in the middle ear, named the malleus, incus, and stapes, that play a key role in transmitting sound vibrations to the inner ear.