An Investor Is Considering a Project That Will Generate $900,000

question 68

Multiple Choice

An investor is considering a project that will generate $900,000 per year for four years. In addition to upfront costs, at the completion of the project at the end of the fifth year there will be shut-down costs of $400,000. If the cost of capital is 4.4%, based on the MIRR, at what upfront costs does this project cease to be worthwhile?

• A) $2.62 million
• B) $2.91 million
• C) $3.21 million
• D) $3.50 million

---

Definitions:

Cognitive-behavioral Therapy

A form of psychotherapy that focuses on changing negative thought patterns and behaviors that contribute to psychological distress.

Disturbances in Emotion

Disruptions or abnormalities in the experience or expression of emotions, which may impact an individual's mental health or social interactions.

Ethnic Identity Formation

The process through which individuals develop a sense of belonging to their culture or ethnic group, including understanding and acceptance of their cultural heritage.

Ethnic Identity Search

The process through which individuals explore and seek to understand their culture, heritage, and lineage, often seen as a component of personal identity formation.