Dul Corporation Has Provided the Following Data Concerning an Investment

question 163

Multiple Choice

Dul Corporation has provided the following data concerning an investment project that it is considering: The working capital would be released for use elsewhere at the end of the project in 3 years.The company's discount rate is 7%.The net present value of the project is closest to:

• A)($61, 872)
• B)($9, 648)
• C)$10, 000
• D)$54, 352

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Definitions:

Rescission

The legal act of cancelling or terminating a contract, returning the parties, as much as possible, to their positions prior to entering the agreement.

Rebuilt Transmission

A vehicle transmission that has been disassembled, inspected, repaired, and reassembled with new or refurbished components to meet original specifications.

Tort Of Deceit

A legal wrong involving intentional misrepresentation or concealment of truth leading to damage or injury to another.

Compensation

Payment or reparation received by someone as a recompense for loss, injury, or suffering.