A Given Project Requires a $25,000 Investment and Is Expected

question 25

Multiple Choice

A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows:
$$\begin{array} { c c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \\\hline \$ 4,000 & \$ 15,000 & \$ 6,000 & \$ 25,000\end{array}$$
Assuming a discount rate of 10%,what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
$$\begin{array} { c c c } i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}$$

• A) $6,217.50
• B) ($4,459.80)
• C) ($6,217.50)
• D) $8,275.00
• E) $0.00

Understand the financial impacts of supply decisions on both the balance sheet and income statement.

Comprehend the importance of sustainability and ethical considerations within the supply chain.

Recognize the evolution of supply management from a transactional to a strategic function.

Understand the impact of supply management actions on the organization's financial performance and competitive positioning.

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Definitions:

Price Changes

Adjustments in the cost of goods or services in the economy, which can be influenced by factors such as supply and demand or inflation.

Output Quota

A limit set, usually by a governing body, on the amount of a product that can be produced or sold within a certain period.

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and often higher prices.

Collusive Control

Practices whereby firms in the same industry conspire to control market competition, often through price fixing, market allocations, or production quotas, in violation of antitrust laws.