A Project Will Produce Cash Inflows of $2,800 a Year

question 18

Multiple Choice

A project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5.The project's initial cost is $9,500.What is the net present value of this project if the required rate of return is 16 percent?

• A)-$311.02
• B)$1,048.75
• C)$4,650.11
• D)$9,188.98
• E)$11,168.02

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Definitions:

Freedom

The ability or authority to behave, communicate, or think freely without any limitations or controls.

Cost

The value of what is given up in exchange for something; often associated with financial expenditures but can also include time and effort.

Cohabitation

The state of living together and sharing a domestic life without being married.

United States

A country located primarily in North America, consisting of 50 states and a federal district.