A Project Will Cost $50,000 to Initiate and Will Generate

question 69

Multiple Choice

A project will cost $50,000 to initiate and will generate real cash flows of $40,000 in each of the next two years.The nominal discount rate has been estimated to be 10 percent per year.Expected inflation is 4 percent over the next two years.What is the NPV of the project?

• A) $19,421.49
• B) $21,573.55
• C) $23,573.55
• D) $25,496.63

---

Definitions:

Collecting Ducts

The ducts in the kidneys that are responsible for the final concentration and transport of urine towards the ureters and bladder.

Renal Corpuscles

The initial blood-filtering component of a nephron in the kidneys that involves the glomerulus and Bowman's capsule.

Micturition

The process of expelling urine from the bladder; also known as urination.

Tubular Secretion

The process by which substances are actively transported out of the blood and into the tubular fluid of the nephrons in the kidneys.