Net Present Value: the Cyclone Golf Resorts Is Redoing Its

question 66

Multiple Choice

Net present value: The Cyclone Golf Resorts is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1, 223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate discount rate for the firm is 13 percent, what is the NPV of this project?

• A) $7,581,072
• B) $2,092,432
• C) $4,836,752
• D) $3,112,459

---

Definitions:

Z-score

A metric that shows how many standard deviations away a specific data point lies from the average.

National Center for Health Statistics

A division of the Centers for Disease Control and Prevention (CDC) tasked with collecting and analyzing data related to the health of the United States population.

Standard Deviation

A measure reflecting the variation or spread in a collection of data points.

Birthweight

The weight of a baby at birth, an important indicator of neonatal health and development.