Suppose an Investment with an Initial Cost of $10,000 Is

question 29

Multiple Choice

Suppose an investment with an initial cost of $10,000 is estimated to produce after-tax cash flows of $3,000 per year for 8 years.How low can the annual after-tax cash flows be before the NPV of the investment equals zero? Assume that the appropriate discount rate is 8%.

• A)$1,250
• B)$1,260
• C)$1,740
• D)$2,262

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An unpleasant emotional response to perceived threats or danger, characterized by feelings of anxiety and caution.

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