What Is the Project's NPV If It Requires an Initial

question 112

Multiple Choice

What is the project's NPV if it requires an initial cash outlay of $50,000 and pays $8,000 per year indefinitely? Assume the appropriate discount rate is 15 percent and the tax rate is zero.

• A) -$3,623.19
• B) $1,479.82
• C) $3,333.33
• D) $53,333.33

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Definitions:

Serratus Anterior

A muscle of the chest that assists in the upward movement of the arm and in the breathing process.

Rectus Abdominis

A long muscle running from the pubis to the rib cage, involved in flexing the lumbar spine and stabilizing the pelvis and lower back.

External Oblique

A muscle located on the lateral and anterior part of the abdomen, playing a crucial role in the movement and support of the trunk.

Internal Oblique

A muscle in the abdominal wall that assists in rotating and side-bending the trunk.