A Firm Is Considering a Project with an Annual Cash

question 38

Multiple Choice

A firm is considering a project with an annual cash flow of $80,000.The project would have a 10-year life,and the company uses a discount rate of 8 percent.What is the maximum amount the company could invest in the project and have the project still be acceptable (rounded) ?

• A)$800,000
• B)$536,800
• C)$406,420
• D)$727,208

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Definitions:

Retentive Outputs

In PLC systems, retentive outputs retain their state even after the controller is powered off or resets, allowing for the continuation of processes without data loss.

Nonretentive Outputs

Outputs in a control system that do not retain their state after a power loss or reset, returning to their default state.

Label (LBL) Instruction

The Label (LBL) Instruction is used in programming to define a point or position in the code that can be referred to or jumped to by other parts of the program.