What Is the NPV for a Project If Its Cost

question 161

Multiple Choice

What is the NPV for a project if its cost of capital is 0 percent and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?

• A) $1,700,000
• B) $371,764
• C) $137,053
• D) $6,700,000

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Definitions:

Correlation Coefficients

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1 where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Accurate Predictions

Forecasts or guesses that accurately match or describe future outcomes or events based on available data or analysis.

Correlation Coefficients

Correlation coefficients are statistical measures that quantify the degree to which two variables move in relation to each other, indicating the strength and direction of their relationship.

Accurate Predictions

Precise forecasts or projections about future events or outcomes, based on data or analysis.