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:

Indirect Approach

A communication strategy where the main point or message is not presented first but instead is built up to through explanations, background information, or related details.

Pelvic Cavity

The body cavity located within the pelvis, housing organs such as the bladder, reproductive organs, and rectum.

Iliac Artery

A major artery in the pelvis that divides into the internal and external iliac arteries, supplying blood to the pelvic region and lower limbs.

Backflow

The undesirable reversal of flow in a piping system, often leading to contamination or pressure problems.