Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8
-Refer to Figure 7.8. If the price of capital is $25, then along isocost line AB total cost is
Definitions:
Present Value
The current value of a future sum of money or stream of cash flows given a specified rate of return.
Initial Investment
The amount of capital put into a project or business at the beginning, often used in capital budgeting to analyze potential returns.
Life Of Equipment
The estimated duration for which equipment can be expected to operate effectively and be used productively by a business.
Annual Cash Inflow
The total amount of money received by a company over a year, from operations, investments, and financing activities.
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