An Outlay of $180,000 Is Expected to Yield the Following

question 3

Multiple Choice

An outlay of $180,000 is expected to yield the following cash flows: Year Net Cash Flow
1 75,000
2 55,000
3 60,000
4 25,000
5 15,000
6 10,000
The cost of capital is 12 percent. What is the NPV?

• A) $8,505
• B) $5,070
• C) $3,525
• D) $2,982

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Definitions:

Voltage Loss

The reduction in electrical potential across a conductor as electrical current flows through it, due to the impedance of the conductor.

Starter Solenoid

An electromagnetic switch that engages the starter motor of an engine, turning it over to initiate combustion.

Voltage Drop

The reduction in electrical voltage as it passes through a component or conductor, due to resistance or impedance in the circuit.

Low Current Draw

The condition of an electrical device consuming a relatively small amount of electrical current.