Roxy Botanicals Forecasts the Following Cash Flows at the End

question 34

Multiple Choice

Roxy Botanicals forecasts the following cash flows at the end of each year for a project.If the firm's discount rate is 9%,COMPOUNDED CONTINOUSLY,what is the present value of the project?

• A) $8,592,925
• B) $8,702,132
• C) $8,736,914
• D) $8,845,121

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Definitions:

Total Revenue

Total Revenue is the entire amount of money earned by a firm from the sale of its goods or services before any costs or expenses are deducted.

Purely Competitive Firm

A business that operates in a market where there are many sellers and buyers, the product is homogeneous, and there is free entry and exit from the market.

Units of Output

The quantity of goods or services produced by a company, industry, or economy within a specific period.

Marginal Revenues

The extra earnings accrued by selling an additional unit of a good or service.