An Investment Costs $100,000 and Provides a Cash Inflow of $17,000

question 21

Multiple Choice

An investment costs $100,000 and provides a cash inflow of $17,000 per year.If the discount rate is 13%,how long must the cash inflows last for it to be an acceptable investment?

• A) 24 years
• B) 6 years
• C) 10 years
• D) 12 years

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Definitions:

Productive

Relating to the ability to produce a significant amount or result, especially in terms of goods or services.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and emotions.

Automated Production

Automated production involves the use of various technologies and machinery to streamline production processes, reducing human intervention and increasing efficiency.

Per-Unit Costs

The average cost associated with producing one unit of a good or service, calculated by dividing total costs by the number of units produced.