Consider a 12-Year Project That Costs $48,000 Today and Will

question 93

Multiple Choice

Consider a 12-year project that costs $48,000 today and will produce after-tax cash flows of $6,000 each year for the first four years,$7,000 each year for the next four years,and $8,000 each year for the last four years.If the cost of capital is 8 percent,what is the project's NPV?

• A) -$30,092.41
• B) $907.11
• C) $3,229.86
• D) $21,554.66

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Definitions:

Self-Motivation

The ability to initiate and continue actions or tasks without external encouragement or pressure.

Training

An educational process that aims to enhance skills, knowledge, and competencies for a specific purpose or job.

Expectancy Theory

A motivational theory suggesting that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.