Meyer,IncIs Considering a Five-Year Project That Has an Initial After-Tax

question 10

Multiple Choice

Meyer,Inc.is considering a five-year project that has an initial after-tax outlay or after-tax cost of $70,000.The future after-tax cash inflows from its project for years 1,2,3,4 and 5 are all the same at $35,000.Meyer uses the net present value method and has a discount rate of 10%.Will Meyer accept the project?

• A)Meyer accepts the project because the NPV is about $69,455.
• B)Meyer accepts the project because the NPV is about $62,678.
• C)Meyer rejects the project because the NPV is about -$13,382.
• D)Meyer rejects the project because the NPV is less than -$33,021.

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Definitions:

Aboriginal People

Indigenous peoples native to a land or region, especially referring to the First Nations, Inuit, and Métis peoples of Canada.

Consciousness

Being cognizant and able to reflect on one's own life, feelings, thoughts, setting, and personal experiences.

Mental Processes

Internal cognitive operations that include thinking, perceiving, decision-making, problem-solving, and remembering.

Circadian Rhythm

An internal biological clock regulating a variety of physiological processes, including the sleep-wake cycle, over roughly a 24-hour period.