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Noble Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $ 110,000 . The future cash inflows from its project are $30,000, $25,000, $50,000 and $40,000 for years 1, 2, 3 and 4, respectively. Noble uses the net present value method and has a discount rate of 10 %. Will Noble accept the project? Group of answer choices     Noble rejects the project because the NPV is -$3,021   Noble accepts the project because the NPV is greater than $3000   Noble accepts the project because the NPV is greater than $2800   Noble rejects the project because the NPV is less than -$4,000

Noble Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $ 110,000 . The future cash inflows from its project are $30,000, $25,000, $50,000 and $40,000 for years 1, 2, 3 and 4, respectively. Noble uses the net present value method and has a discount rate of 10 %. Will Noble accept the project? Group of answer choices     Noble rejects the project because the NPV is -$3,021   Noble accepts the project because the NPV is greater than $3000   Noble accepts the project because the NPV is greater than $2800   Noble rejects the project because the NPV is less than -$4,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Noble Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $ 110,000 . The future cash inflows from its project are $30,000, $25,000, $50,000 and $40,000 for years 1, 2, 3 and 4, respectively. Noble uses the net present value method and has a discount rate of 10 %. Will Noble accept the project?

Group of answer choices

 

 

Noble rejects the project because the NPV is -$3,021

 

Noble accepts the project because the NPV is greater than $3000

 

Noble accepts the project because the NPV is greater than $2800

 

Noble rejects the project because the NPV is less than -$4,000

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