Exhibit 8-1
a Project Requires an Initial Investment of $1,500,000 $( r = 10 \% )$

question 43

Multiple Choice

Exhibit 8-1
A project requires an initial investment of $1,500,000 and will return $420,000 each year for six years.
Factors: Present Value af an Annuity $( r = 10 \% )$
$\begin{array} { l l } \text { Year 1 } & 0.9091 \\ \text { Year 2 } & 1.7355 \\ \text { Year 3 } & 2.4869 \\ \text { Year 4 } & 3.1699 \\ \text { Year 5 } & 3.7908 \\ \text { Year 6 } & 4.3553 \end{array}$
-Refer to Exhibit 8-1.If taxes are ignored and the required rate of return is 10%,what is the project's net present value (rounded to the nearest dollar) ?

• A)$1,262,910
• B)$1,020,000
• C)$329,226
• D)$344,409
• E)None of the answer choices is correct.

---

Definitions:

Mediating Technology

Links people together in a beneficial exchange of values.

Mutually Beneficial

A situation or agreement that provides advantageous outcomes to all parties involved, ensuring that everyone gains or benefits from the collaboration.

Exchange Of Values

A fundamental concept in economics and marketing referring to the mutual giving and receiving of value, often in the form of goods, services, or money, between parties in a transaction.

Continuing Improvement

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.