Use the Following Table, a Company Has a Minimum

question 212

Multiple Choice

Use the following table, A company has a minimum required rate of return of 10% and is considering investing in a project that requires an investment of $98,000 and is expected to generate cash inflows of $42,000 at the end of each year for three years. The present value of future cash inflows for this project is

• A) $98,000.
• B) $104,454.
• C) $114,898.
• D) $6,454.

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Definitions:

Back and Forth

A repeated movement or discussion going in one direction and then in the opposite direction.

Points

Main ideas, arguments, or pieces of information presented or considered in a discussion or analysis.

Subordinated

The act of placing someone or something in a lower rank or position, or making them of less importance or priority.

Wedding Ring

A ring symbolizing marriage, traditionally worn on the base of the left ring finger to signify marital commitment and love.