Project XYZ Has a Cost of $200,000 and Provides the Following

question 65

Multiple Choice

Project XYZ has a cost of $200,000 and provides the following annual cash inflows: year 1 $35,000; year 2 $25,000; year 3 $175,000; and year 4 $10,000. What is the net present value of this investment, assuming the discount rate is 8%?

• A) $135
• B) $4,687
• C) $101,050
• D) $200,135

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Definitions:

Extraterrestrial Beings

Life forms that originate from outside Earth and its atmosphere.

UFO Sightings

Observations reported by individuals or groups of unidentified flying objects, often associated with extraterrestrial life.

Moon Illusion

An optical illusion in which the moon appears larger near the horizon than it does while higher up in the sky.

Horizon

The line at which the earth's surface and the sky appear to meet, or metaphorically, the limit of a person's knowledge, experience, or interest.