Benjamin Company Invested in a 3-Year Project and Expects a 15

question 73

Multiple Choice

Benjamin Company invested in a 3-year project and expects a 15% rate of return. Annual cash inflows from the project are: year 1 $8,000; year 2 $8,500; and year 3 $9,500. The net present value is $4,000. What was the amount of the original investment? Ignore income taxes.

• A) $17,637
• B) $15,637
• C) $19,637
• D) $23,637

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Definitions:

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Sensory Memory

The shortest term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Abstract Thinking

The capability to conceptualize objects, principles, and ideas that are not tangible.

Old E-mail Password

A previously used secret alphanumeric code required to access one's email account, which may have been updated or changed.