What Is the NPV for the Following Project If Its

question 83

Multiple Choice

What is the NPV for the following project if its cost of capital is 15 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) none of the above

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Definitions:

Erosion

Erosion is the process by which natural forces like water, wind, or ice wear away land surfaces, transporting the materials from one location to another.

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substances that pollute something, especially water or the atmosphere, and can cause harm to the environment and health.

Flagship Species

Species that evoke a strong emotional response in humans; charismatic, cute, regal (e.g., lions, tigers, dolphins, pandas).

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