Bern Company Invested in a Project That Cost $100,000

question 106

Multiple Choice

Bern Company invested in a project that cost $100,000. It had a net present value of $15,975 and a useful life of 8 years. The firm uses a 14% discount rate, and the project has an internal rate of return of 16%. What are the annual cost savings provided by the project?

• A) $25,000
• B) $26,698
• C) $9,263
• D) $8,600