Calculate the NPV of a Project Requiring a $3,000 Investment

question 34

Multiple Choice

Calculate the NPV of a project requiring a $3,000 investment followed by an outflow of $500 in Year 1, and inflows of $1,000 in Year 2 and $4,000 in Year 3. The cost of capital is 12%. (Round to nearest $)

• A)$52
• B)$198
• C)$257
• D)$486

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Definitions:

Strategic Plan

A document that outlines an organization's strategy for achieving its goals over a specific timeframe, including objectives, action plans, and resource allocation.

Implementation

The process of putting a decision or plan into effect; execution.

Legal Control

The mechanisms, policies, and procedures put in place within an organization to comply with laws, regulations, and standards, ensuring lawful operation.

Ad Hoc Alliance

A temporary coalition formed for a specific task or objective, not intended as a permanent partnership.