Objective Products' Required Rate of Return on Capital Budgeting Projects

question 78

Multiple Choice

Objective Products' required rate of return on capital budgeting projects is 9%.The company is considering an investment that would yield net annual operating cash flows of $30,000 for 3 years.What is the maximum amount that the company will be willing to invest in this project?

• A)$75,939
• B)$69,498
• C)$90,000
• D)$98,100

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Definitions:

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The condition of having a developing embryo or fetus in the uterus, lasting about 40 weeks from the last menstrual period to childbirth.

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Units of energy in food; the fuel our bodies use for energy.

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Refined sugar obtained from the sugarcane plant, often used as a sweetener in foods and beverages.