A Project Will Cost $150,000 to Initiate and Will Generate

question 41

Multiple Choice

A project will cost $150,000 to initiate and will generate nominal cash flows of $80,000 in each of the next three years.The real discount rate has been estimated to be 10 percent per year.Expected inflation is 3 percent over the next three years.What is the NPV of the project?

• A) $37,934.15
• B) $42,303.08
• C) $48,948.16
• D) $76,288.91

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Definitions:

Leader-Participation Model

A leadership theory which suggests the degree of involvement and participation of team members in decision making should be contingent on characteristics of the situation.

Consult-With-Group

A decision-making approach where input and advice are sought from a group to enhance the quality and acceptance of decisions.

Low-LMX Relationship

Refers to a low-quality Leader-Member Exchange relationship, characterized by limited trust, respect, and obligation between a leader and a follower.

Perceived Unfavourable

The impression or belief that something is disadvantageous or negative.