Brookfield Heavy Equipment Is Considering a Project That Will Produce

question 41

Multiple Choice

Brookfield Heavy Equipment is considering a project that will produce after tax cash of $40,000 per year for 5 years. The project will require an initial investment of $144,191. At what discount rate will the project reach break-even NPV?

• A) 8%
• B) 10%
• C) 12%
• D) 11.11%

---

Definitions:

Creative Intelligence

An aspect of intelligence that involves the ability to deal with new situations using past experiences and current skills.

Practical Intelligence

A type of intelligence that involves the ability to solve everyday problems through practical understanding and reasoning.

Novel Solutions

Innovative or original methods or ideas developed to solve problems.

Analytic Intelligence

One component of Sternberg's triarchic theory of intelligence, referring to the ability to analyze, evaluate, judge, or compare and contrast.