What Is the Minimum Cash Flow That Could Be Received

question 122

Multiple Choice

What is the minimum cash flow that could be received at the end of year three to make the following project "acceptable?" Initial cost = $100,000; cash flows at end of years one and two = $35,000; opportunity cost of capital = 10 percent.

• A)$29,494
• B)$30,000
• C)$39,256
• D)$52,250

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The act of not spending a portion of income and setting it aside for future use, often in a deposit account or as an investment.

Deficits

The situation that arises when a government, company, or individual spends more money than it receives in income or revenue over a specified period.

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The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

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Reductions in the amount of tax that individuals or corporations must pay to the government.