Given the Following Information,calculate the NPV of a Proposed Project

question 191

Multiple Choice

Given the following information,calculate the NPV of a proposed project: Cost = $4,000;estimated life = 3 years;initial decrease in accounts receivable = $1000,which must be restored at the end of the project's life;estimated salvage value = $1,000;net income before taxes and depreciation = $2,000 per year;method of depreciation = MACRS;tax rate = 40 percent;required rate of return = 18 percent.

• A) $1,137
• B) −$151
• C) $137
• D) $804
• E) $544

---

Definitions:

Coping Strategies

Techniques or methods used to manage stress, adapt to challenging situations, and maintain emotional and mental well-being.

Anxious Situations

Scenarios or conditions that provoke anxiety or stress in an individual.

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

Bleeding Duodenal Ulcer

A peptic ulcer located in the duodenum that causes bleeding, often due to erosion of a blood vessel by the ulcerative process.