Lithium,Inc

question 56

Multiple Choice

Lithium,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Lithium,Inc.'s required rate of return for these projects is 10%.The equivalent annual annuity amount for project B,rounded to the nearest dollar,is

• A) $17,385.
• B) $20,936.
• C) $22,789.
• D) $26,551.

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Definitions:

SWOT Analysis

A strategic planning technique used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.

Internal Analysis

The process of evaluating an organization's strengths and weaknesses by reviewing its resources, capabilities, and competencies.

Trend Analysis

Trend analysis is the practice of collecting data and analyzing patterns over time to predict future movements, make comparisons, or identify significant changes.

Labour Demand Forecasting

The process of estimating the future demand for labor within an organization, considering predicted future business activities, economic conditions, and strategic directions.