A Once in a Lifetime Project Requires an Immediate Outlay

question 15

Essay

A once in a lifetime project requires an immediate outlay of $100 000 and $25 000 at the end of each year for 3 years. Net returns are nil for the first 3 years and $30 000 per year thereafter for fourteen years. What is the net present value of the project at 16%?

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Definitions:

Patella

The kneecap; a small flat triangular bone located in front of the knee joint.

Hyoid

A U-shaped bone in the neck that supports the tongue and is associated with swallowing.

Scapula

A flat triangular bone located in the upper back that connects the humerus (upper arm bone) with the clavicle (collar bone).

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone; also known as the collarbone.