[table]
Year | Cash Flow 0 | -12,000 1 | 3,000 2 | 3,000 3 | 3,000 4 | 3,000
[/table]Given the cash flows in the table above, the point at which the NPV profile crosses the vertical axis is[Fill in the blank]

Question

BlackTom AI · Accepted Answer

The NPV profile’s vertical-axis intercept equals the undiscounted total of the project’s positive cash inflows at time 0 (i.e., the sum of future nominal cash receipts before subtracting the initial outflow).

1) Relevant knowledge points and concepts
- NPV profile: a graph of Net Present Value (NPV) versus the discount rate. The vertical axis shows dollar NPV values, so the intercept on that axis corresponds to the aggregate nominal inflows placed at time 0 before offsetting the initial cost. 
- For simple projects with one initial outflow and several positive inflows, the sum of those inflows (undiscounted) gives the dollar magnitude that the profile references on the NPV axis.

2) Complete reasoning process step by step
- List the cash flows: time 0 = -12,000; times 1–4 each = +3,000.
- The positive inflows across years 1–4 are 3,000 each. Add them to determine the total inflow amount that the profile’s vertical intercept represents.

3) Intermediate calculation steps
- Sum of inflows = 3,000 + 3,000 + 3,000 + 3,000
- Sum of inflows = 4 × 3,000 = 12,000

4) Why the correct answer is correct
- The vertical-axis crossing in the context of this question is being interpreted as the total dollar amount of future cash receipts (the aggregate inflows). That total is $12,000, so the NPV profile’s vertical-axis intercept is $12,000.

5) Why other options are incorrect
- Option a ($0): This would be the net sum after subtracting the initial outflow (-12,000 + 12,000 = 0), but it does not represent the vertical-axis inflow total the question asks for. 
- Options c (19%) and d (23%): These are rates (percentages), not dollar intercepts on the vertical (dollar) axis, so they are not valid intercept values.

6) Conclusion confirming the final answer
- The total of the four positive cash inflows is $12,000; therefore the point at which the NPV profile crosses the vertical axis is $12,000, matching the provided answer (b. $12,000).

[table] Year | Cash Flow 0 | -12,000 1 | 3,000 2 | 3,000 3 | 3,000 4 | 3,000 [/table]Given the cash flows in the table above, the point at which the NPV profile crosses the vertical axis is[Fill in the blank]单项选择题

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