Compute the NPV for Project X with the Cash Flows

question 87

Multiple Choice

Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent.

• A) $2,013.18
• B) $175.66
• C) $486.29
• D) $9,824.34

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Definitions:

Utility

A measure of satisfaction or pleasure that a person gains from consuming goods and services.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer gains from consuming one more unit of a good or service.

Hot Dogs

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.

French Fries

Strips of potatoes that are deep fried until crisp and are often served as a side dish or snack.