A Project Will Give a One-Time Cash Flow of $20,000

question 28

Multiple Choice

A project will give a one-time cash flow of $20,000 after one year.If the project risk requires a return of 10%,what is the levered value of the firm with perfect capital markets?

• A)$18,182
• B)$20,000
• C)$19,000
• D)more information needed

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Definitions:

2-Bromo-4-Nitrobenzoic Acid

An organic compound with a benzene ring substituted with bromo, nitro, and carboxylic acid functional groups, used in synthetic chemistry.

Toluene

A colorless, water-insoluble liquid hydrocarbon of the benzene family, used as a solvent and in the manufacture of various chemicals.

Major Product

The primary outcome of a chemical reaction, especially when it yields more of one product over any other possible outcomes.

Nucleophilic Aromatic Substitution

A reaction where an electron-rich nucleophile displaces a leaving group attached to an aromatic ring.