Use the Table for the Question(s)below

question 107

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
-Consider the above statement of cash flows.If all amounts shown above are in millions of dollars,what were AOS Industries' retained earnings for 2008?

• A)$1.3 million
• B)$1.7 million
• C)$2.1 million
• D)$5.4 million

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Definitions:

NPV Method

A method of evaluating investments by calculating the Net Present Value of the project's cash inflows and outflows discounted at the investment's cost of capital.

Discount Rate

The rate utilized in the process of calculating the present value of a financial instrument's future cash flows by discounting them.

Accept Decision

In decision-making, particularly in business, the choice to proceed with a particular action or proposal based on analysis or criteria satisfaction.

Payback Method

An investment appraisal technique that calculates the time required to recoup the cost of an investment.