What Is the Net Present Value of a Project That

question 147

Multiple Choice

What is the net present value of a project that requires an initial investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the discount rate is 15 percent.

• A)$91,520
• B)$15,520
• C)$78,000
• D)$167,474

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Definitions:

Tenacity

A way of knowing based on accepting knowledge, correctly or incorrectly, because it has stood the test of time.

Test of Time

The ability of something to remain useful, valuable, or relevant over a long period.

Epistemological Questions

Queries regarding the nature, scope, and sources of knowledge.

Two-tailed Hypothesis

A statistical test hypothesis that allows for the possibility of an effect in two directions, either greater than or less than a specified range or parameter.