Use the Table for the Question(s)below

question 6

Multiple Choice

Use the table for the question(s) below.
Consider the following mutually exclusive projects:
-The equivalent annual benefit of project A is closest to:

• A)$21.70.
• B)$5.05.
• C)$24.00.
• D)$3.40.

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Definitions:

End-Of-Period Net Income

The net income calculated at the end of an accounting period, reflecting the total earnings after accounting for all expenses and revenues.

Accounting Recognition

This refers to the process of recording financial transactions in the financial statements according to accepted accounting principles.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Direct Method

A way to present the cash flow statement where actual cash flows from operating activities are listed directly.