$$\text { Reference: } 10 - 02$$ Oriental Company Has Gathered the Following Data on a Proposed

question 83

Multiple Choice

$$\text { Reference: } 10 - 02$$ Oriental Company has gathered the following data on a proposed investment project: $$\begin{array} { | l | l | } \hline \text { Investment in depreciable equipment } & \$ 200,000 \\\hline \text { Annual net cash flows } & \$ 50,000 \\\hline \text { Life of the equipment } & 10 \text { years } \\\hline \text { Salvage value } & \$ 20 \\\hline \text { Discount rate } & 10 \% \\\hline\end{array}$$ The company uses straight-line depreciation on all equipment.
-How can the internal rate of return of a project be determined

• A)By finding the discount rate that yields a net present value of zero.
• B)By determining that the project cash flows are equal each year.
• C)By some other method than listed above.
• D)By determining that the project profitability index is greater than one.

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Definitions:

Transfer Belt

A safety device commonly used in healthcare to assist in transferring patients from one position to another, promoting stability and reducing injury risks.

Patient Transfer

The safe movement of a patient from one location to another or from one surface to another.

Friction

The resistance that one surface or object encounters when moving over another.

Draw Sheet

A small bed sheet placed crosswise over the middle of the bottom sheet of a mattress to cover the area between the upper thighs and shoulders of a patient.