Solved

A Project Manager Is Using the Net Present Value Method

Question 61

Multiple Choice

A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 12% required rate of return and expects a 3% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table? A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 12% required rate of return and expects a 3% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table? A) -$9,762 B) -$56,859 C) -$69,387 D) -$98,780


A) -$9,762
B) -$56,859
C) -$69,387
D) -$98,780

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q22: A simple scoring model for project evaluation

Q27: The Analytical Hierarchy Process is used to

Q40: An options model could be used when

Q43: Successful firms use project portfolio planning routinely

Q66: A project manager is using the payback

Q74: What two simple rules should be followed

Q80: Provide an example of a numeric and

Q82: Options models are used to assist in

Q89: The pairwise comparison approach:<br>A)Is a method to

Q99: Which statement regarding project selection is BEST?<br>A)Organizational