If a 3-Year Capital Project Costing $77,310 Has an Internal

question 102

Multiple Choice

If a 3-year capital project costing $77,310 has an internal rate of return factor equal to 2.577, the net annual cash flows assuming straight-line depreciation are

• A) $25,770.
• B) $30,000.
• C) $10,000.
• D) $38,655.

---

Definitions:

MRI

Magnetic Resonance Imaging, a diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.

Magnetic Fields

Invisible fields that exert force on substances that are sensitive to magnetism, including ferromagnetic materials and moving electrical charges.

Radio Waves

Electromagnetic waves with wavelengths longer than infrared light, used for communication among various devices, such as radios and televisions.

Pituitary Gland

An endocrine gland about the size of a pea situated at the base of the brain, responsible for the secretion of various hormones that regulate growth, metabolism, and other important body functions.