DeVault Services Recently Hired You as a Consultant to Help

question 36

Multiple Choice

DeVault Services recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

• A) $15,740
• B) $16,569
• C) $17,441
• D) $18,359
• E) $19,325

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Definitions:

Customer Relationships

The interactions and engagement between a business and its customers, focusing on long-term retention and satisfaction.

CRM Technologies

Tools and software used by businesses to manage customer data and interactions, streamline operations, and improve customer relationships.

Safeguards

Measures or mechanisms put in place to protect against potential harm or ensure security.

Lucrative

Generating a significant profit or financial gain, often used to describe business ventures or investments.