If the Desired Rate of Return on a Project Is

question 85

Multiple Choice

If the desired rate of return on a project is 10%, determine the present value of $40,000 to be received in four years using the following partial table of present value of $1 at compound interest. ? $$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $27,320
• B) $25,440
• C) $31,680
• D) $30,040

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Definitions:

Break-Even Point

The point at which total sales match total costs, leading to no profits or losses.

Product Development

The complete process of bringing a new product or improving an existing one to the market, from idea conception to final production.

Customer Response Time

The duration it takes for a business to reply to a customer inquiry or request.

Customer Profitability Analysis

The process of determining the profit or loss attributed to a particular customer, identifying which relationships are most beneficial.