Use the Information for the Question(s)below

question 102

Multiple Choice

Use the information for the question(s) below.
Epiphany Industries is considering a new capital budgeting project that will last for three years.Epiphany plans on using a cost of capital of 12% to evaluate this project.Based on extensive research,it has prepared the following incremental cash flow projects:

-The net present value (NPV) for Epiphany's Project is closest to:

• A)$4825
• B)$39,000
• C)$11,946
• D)$20,400

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Definitions:

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.

Appendix B

Generally, this term would refer to additional supporting information found at the end of a document, book, or publication, but without a specific context, it is too broad for a unique definition.

Disclosure

The action of making new or secret information known.