A Given Project Requires a $25,000 Investment and Is Expected

question 36

Multiple Choice

A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows:
$$\begin{array} { c c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \\\$ 44,000 & \$ 15,000 & \$ 6,000 & \$ 25,000\end{array}$$
Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below.
$$\begin{array} { c c c } \mathrm { i } = 10 \% & \mathrm { i } = 10 \% & \mathrm { i } = 10 \% \\\mathrm { n } = 1 & \mathrm { n } = 2 & \mathrm { n } = 3 \\\hline .9091 & .8264 & .7513\end{array}$$

• A) $6,217.50
• B) ($4,459.80)
• C) ($6,217.50)
• D) $8,275.00
• E) $0.00

---

Definitions:

Ester

Organic compounds formed by the reaction of an acid (usually carboxylic acid) with an alcohol, characterized by the functional group -COO-.

Williamson Ether Synthesis

A chemical reaction that synthesizes ethers from alkyl halides and alcohols using a strong base.

Mechanism

A detailed explanation of the step-by-step process by which a chemical reaction occurs.

E2

A bimolecular elimination reaction mechanism where a substrate eliminates two substituents forming a double bond, with the departure of a leaving group and loss of a proton.