Use the Following Table $\text { Present Value of an Annuity of } 1$

question 50

Multiple Choice

Use the following table $\text { Present Value of an Annuity of } 1$$\begin{array}{rrrr}\text { Period } & 8 \% & 9 \% & 10 \%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$ A company has a minimum required rate of return of 9%. It is considering investing in a project that requires an investment of $210000 and is expected to generate cash inflows of $90000 at the end of each year for three years. The present value of future cash inflows for this project is

• A) $210000.
• B) $223830.
• C) $227790.
• D) $17790.

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Definitions:

Metabolic Rate

The rate at which the body uses energy for essential processes like breathing, circulating blood, and cellular repair.

Evaporation

The process in which liquid water turns into vapor, typically influenced by heat.

Muscle Tissue

A soft tissue in animals that generates force and allows for movement, comprising skeletal, cardiac, and smooth muscle types.

Voluntary Contraction

The intentional activation of muscle fibers through the nervous system, enabling movement and physical actions.