Bevans Corporation Is Considering a Capital Budgeting Project That Would

question 157

Multiple Choice

Bevans Corporation is considering a capital budgeting project that would require an initial investment of $190,000. The investment would generate annual cash inflows of $58,000 for the life of the project, which is 4 years. The company's discount rate is 7%. The net present value of the project is closest to:

• A)$190,000
• B)$6,446
• C)$196,446
• D)$42,000

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Definitions:

Factory System

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Lowell

A city in Massachusetts known for its significant role in the American Industrial Revolution, especially in textile manufacturing.

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Samuel Slater, often known as the "Father of the American Industrial Revolution" for introducing British textile manufacturing technology to America.

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The process by which a country selects its head of state, in nations with a presidential system, typically involving a direct or indirect vote by the citizenry.