Calculate the Net Present Value for a Project with the Following

question 28

Multiple Choice

Calculate the Net Present Value for a project with the following cash flows: Year 0: ($5,000) Year 1: $10,000 Year 2: $10,000 Year3: ($2,000) .The discount rate is 5%.

• A) $19,209.75
• B) $14,209.75
• C) $18,840.25
• D) $23,840.25
• E) $12,350.00

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Manufacturing Wages

The compensation paid to workers involved in the production and assembly processes within manufacturing industries.

Industrial Country

A nation that has a significant level of industrialization, characterized by a high income per capita and diversified economy.

Demand For Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in an economy.