What Is the Equivalent Annual Cost for a Project That

question 52

Multiple Choice

What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10 percent?

• A)$20,000.00
• B)$21,356.95
• C)$22,618.83
• D)$25,237.66 NPV = 40,000 + 10,000

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Definitions:

Contagious

Able to be passed from one person to another via direct or indirect contact.

Fatal

Resulting in death or causing the end of life; extremely serious or deadly.

Alveoli

Minute pulmonary sacs essential for the oxygen and carbon dioxide trade-off.

Emphysema

A chronic lung condition where the air sacs (alveoli) become damaged and enlarged, leading to breathing difficulties.