Patterson Co $\begin{array}{lcccc}r & 10.00 \% \\\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 950 & \$ 500 & \$ 400 & \$ 300\end{array}$

question 6

Multiple Choice

Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. $\begin{array}{lcccc}r & 10.00 \% \\\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 950 & \$ 500 & \$ 400 & \$ 300\end{array}$

• A) $54.62
• B) $57.49
• C) $60.52
• D) $63.54
• E) $66.72

---

Definitions:

Manufacturing Overhead

Expenses related to the production process that are not directly tied to a specific product, including utilities, depreciation, and maintenance of equipment.

Time-Driven

Refers to actions or processes that are initiated or executed based on the passage of time or at specific time intervals.

Unused Capacity

The available but unutilized production or service capacity of a business, often reflecting inefficiencies or missed revenue opportunities.

Time-Driven

Pertaining to methods or systems where actions are scheduled or measured based on time.