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:

Customer Value

The perception of what a product or service is worth to a customer compared to the options available.

Fill Rate

A measure of the ability to deliver requested products to customers, typically expressed as a percentage of total orders that are fully satisfied.

CRM Data

Information collected and managed by a Customer Relationship Management system, detailing interactions and relationships with customers.

Loyalty-Card Program

A customer loyalty program that rewards customers for their repeated business with benefits like discounts or free merchandise.