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:

Ninth Month

The final month of human pregnancy, during which significant fetal development concludes and preparations for birth intensify.

Gestation

The period of time during which an embryo develops within the uterus until birth; in humans, this process takes approximately 40 weeks from the last menstrual period.

Fetus

A developing human from roughly eight weeks after conception until the time of birth.

Birth Process

The series of events and stages that lead to the delivery of a baby, from the onset of labor to the delivery.