Given the Cash Flows in the Table Above, the Point

question 82

Multiple Choice

Given the cash flows in the table above, the point at which the NPV profile crosses the vertical axis is ________.

• A) $0
• B) $12,000
• C) 23%
• D) 19%

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Definitions:

Voidable Contract

A voidable contract is a legal agreement that may be annulled or declared invalid by one of the parties due to certain defects, while remaining valid until such action is taken.

Result

The outcome or consequence of an action, process, or situation, often measured to determine success or failure.

Contract

An accord among several parties that is legally obligatory and subject to legal enforcement.

Duress

A condition whereby a person performs an act as a result of violence, threat, or other pressure against the person.