Aviary,Inc

question 76

Multiple Choice

Aviary,Inc.is considering a five-year project that has initial after-tax outlay or after-tax cost of $170,000.The future after-tax cash inflows from its project for years 1 through 5 are $45,000 for each year.Aviary uses the net present value method and has a discount rate of 11.25%.Will Aviary accept the project?

• A)Aviary accepts the project because the NPV is about $5,455.
• B)Aviary accepts the project because the NPV is about $165,275.
• C)Aviary rejects the project because the NPV is about -$4,725.
• D)Aviary rejects the project because the NPV is about -$154,725.

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Definitions:

Embryo

The early stage of development in multicellular organisms, in humans this phase extends from the second to the eighth week of gestation.

Embryonic Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in an embryo that develop into different organs and tissues.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, which gives rise to the outer layer of skin, nails, hair, and nervous system.

Inner Layer

The deeper or internal part of something, often used in a metaphorical sense to describe the core aspects of concepts or objects.