A Project Costing $218,000 Has Equal Annual Cash Inflows Over

question 89

Multiple Choice

A project costing $218,000 has equal annual cash inflows over its 7-year life.If the discounted payback period is seven years and the discount rate is zero percent,what is the amount of the cash flow in each of the seven years?

• A)$31,142.86 per year for each of the seven years
• B)$0 for Years 1 to 6 and $218,000 in Year 7
• C)Any amount between $0 and $218,000 for any one year,provided the sum of the seven cash flows totals $218,000.
• D)$218,000 for Year 1 and $0 for Years 2 through 7.
• E)$0 for each of the seven years

---

Definitions:

Recall Crisis

A situation in which a company must recall a product from the market due to safety concerns, often leading to significant financial and reputational damage.

Accelerator Pedal

is a component in vehicles that controls the engine's power by regulating the amount of fuel or air entering the engine.

Quality Goals

Objectives set related to the standards of products or services, aiming at meeting or exceeding customer expectations.

Dr. Pepper Snapple Group

A leading producer of flavored beverages in North America and the Caribbean, offering more than 50 brands in its portfolio.