Net Present Value: Gao Enterprises Plans to Build a New

question 16

Multiple Choice

Net present value: Gao Enterprises plans to build a new plant at a cost of $3,250,000. The plant is expected to generate annual cash flows of $1,225,000 for the next five years. If the firm's required rate of return is 18 percent, what is the NPV of this project?

• A) $2,875,000
• B) $3,830,785
• C) $580,785
• D) $2,1225,875

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Definitions:

Unhealthy Foods

Foods that are high in harmful nutrients like added sugar and trans fats, often leading to negative health effects.

Primary Teeth

are the first set of teeth in human development, often referred to as baby teeth or milk teeth, critical for chewing, speaking, and keeping space for permanent teeth.

Facial Bones

The bones that structure the human face, including the jaw, cheekbones, nasal bones, and forehead.

Permanent Teeth

The set of teeth that replace primary (baby) teeth and are intended to last throughout an individual's lifetime.