A Project Will Not Produce Any Cash Flows for Two

question 69

Multiple Choice

A project will not produce any cash flows for two years.Starting in the third year,it will produce annual cash flows of $11,900 a year for two years.The project initially costs $43,600.In Year 6,the project will be closed and as a result should produce a final cash inflow of $50,500.What is the net present value of this project if the required rate of return is 8.7 percent?

• A)$5,474.76
• B)$4,802.57
• C)$3,935.56
• D)$7,465.95
• E)$5,447.76

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Definitions:

Psychological Models

Theoretical frameworks used to understand, explain, and predict human behavior and mental processes.

Anxiety Disorders

A group of mental disorders characterized by significant feelings of anxiety and fear.

Symptoms

Observable signs or indicators of a disease, disorder, or condition, often reported by the patient.

Panic Attack

A sudden episode of intense fear or acute discomfort, accompanied by physical symptoms such as heart palpitations, chest pain, and shortness of breath.