Your Firm Is Evaluating a Project That Should Generate Revenue

question 42

Multiple Choice

Your firm is evaluating a project that should generate revenue of $4,600 in year 1,$5,200 in year two,$5,900 in year three,and $5,700 in year four.The firm receives each cash flow at the end of each year.If your firm's required return is 12%,what is the future value of these cash flows at the end of year four?

• A) $16,074.51
• B) $22,583.53
• C) $25,293.55
• D) $28,328.77

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Definitions:

Disadvantages

The negative aspects or drawbacks associated with a situation, process, or decision.

Project Fi

A telecommunications service by Google designed to provide users with wireless internet and mobile phone services.

Wi-Fi Hotspots

Public or private locations where wireless internet access is made available to devices like smartphones, tablets, and laptops.

Project Loon

An initiative by Alphabet (Google's parent company) aimed at providing internet access to remote areas via high-altitude balloons.