Objective Products' Required Rate of Return on Capital Budgeting Projects

question 78

Multiple Choice

Objective Products' required rate of return on capital budgeting projects is 9%.The company is considering an investment that would yield net annual operating cash flows of $30,000 for 3 years.What is the maximum amount that the company will be willing to invest in this project?

• A)$75,939
• B)$69,498
• C)$90,000
• D)$98,100

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide for diagnosing mental disorders.

Mental Disorder

A broad range of conditions affecting mood, thinking, and behavior, often leading to distress or impaired functioning in daily life.

Axes

Refers to fixed reference lines for the coordinates of a graph or geometric figure, or to the main or central line that divides symmetry in a figure or shape.

Describes Symptoms

The action of explaining or detailing the signs and indicators of a condition or disease.