What Is the Net Present Value of a Project with the Following

question 31

Multiple Choice

What is the net present value of a project with the following cash flows and a required return of 12%? $$\begin{array} { c c } \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 28,900 \\1 & \$ 12,450 \\2 & \$ 19,630 \\3 & \$ 2,750\end{array}$$

• A)-$287.22
• B)-$177.62
• C)$177.62
• D)$204.36
• E)$287.22

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Definitions:

Special Bank Account

An account designed for a specific purpose, often subject to certain conditions or restrictions different from regular accounts.

Circulating Security Interests

A security interest in movable assets that change in quantity or value, allowing the debtor to buy, sell, or exchange the collateral without changing the secured status.

Administrator

An independent and suitably qualified person appointed to take full control of a company in an attempt to save either the company or the company’s business.

Execute a Document

The act of signing a document or contract officially, thereby making it legally binding.