Cortez Art Gallery Is Adding to Its Existing Buildings at a Cost

question 80

Multiple Choice

Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years. Given a required rate of return of 10 percent, what is the NPV of this project? (Do not round intermediate computations. Round final answer to nearest dollar.)

• A) $1,802,554
• B) $197,446
• C) -$1,802,554
• D) -$197,446

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Definitions:

Nonverbal Messages

Communication conveyed through body language, facial expressions, and other physical gestures instead of verbal language.

Listening Ability

The skill of effectively receiving, interpreting, and responding to verbal communication.

Unspoken

Communication or agreements not expressed in words but understood tacitly.

Listening Skills

The ability to accurately receive and interpret messages during communication, essential for effective interpersonal interaction.