A Project Is Expected to Create Operating Cash Flows of $24,500

question 47

Multiple Choice

A project is expected to create operating cash flows of $24,500 a year for three years.The initial cost of the fixed assets is $55,000.These assets will be worthless at the end of the project.An additional $4,000 of net working capital will be required throughout the life of the project.What is the project's net present value if the required rate of return is 10 percent?

• A)$4,933.13
• B)$1,954.17
• C)$1,927.87
• D)$4,208.11
• E)$5,927.87

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Definitions:

Amplitude

The height of a wave from its baseline to its peak, indicating the strength or intensity of the wave, such as in sound or light.

Intensity

The magnitude or strength of a phenomenon, often used in context with physical phenomena such as light, sound, and emotions.

Amplitude

The magnitude or intensity of a wave's fluctuation, measured from its baseline to its peak, in physical and electrical phenomena.

Relative Motion

The concept that the motion of an object is always determined relative to some other moving or stationary object.