What Is the Present Worth of an Independent Project That

question 26

Multiple Choice

What is the present worth of an independent project that requires initial investment of $50 000 and annual maintenance costs of $4 000 for 10 years at a 4% minimum acceptable rate of return?

• A)-$4 000
• B)-$32 444
• C)-$54 000
• D)-$82 444
• E)-$17 556

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Definitions:

Earned Income

Income derived from active participation in a business or wage-earning employment.

Transportation Costs

Expenses incurred for transporting goods or individuals from one location to another.

Deductible

An amount that can be subtracted from an individual's gross income or insurance claim, reducing the taxable income or payable sum.

Business Meeting

A gathering organized for the purpose of discussing and conducting business activities or matters.