Louis Is Considering a New Litter Box Factory with the Following

question 61

Multiple Choice

Louis is considering a new litter box factory with the following cash flows,if the discount rate is 10%,what is the NPV?

• A) $1,872.73
• B) $4,494.70
• C) $9,942.54
• D) $8,278.92

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Definitions:

Households

The consuming units in an economy.

Factors Of Production

The inputs used in the creation of goods or services; traditionally includes land, labor, capital, and entrepreneurship.

Capital

Funds or financial assets leveraged by companies to fund their operations and grow their businesses.

Profit

The earnings obtained when the income generated from business operations is higher than the expenses, costs, and taxes required for these operations.