Kipling Company Has Invested in a Project That Has an Eight-Year

question 87

Multiple Choice

Kipling Company has invested in a project that has an eight-year life.It is expected that the annual cash inflow from the project will be $20,000.Assuming that the project has an internal rate of return of 12%,how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.)

• A) $64,648.
• B) $80,800.
• C) $99,353.
• D) $160,000.

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Definitions:

Transfers

Movements of funds or resources from one account to another within an organization or between organizations.

Purchases Journal

A financial record keeping system that tracks all purchases of merchandise, supplies, or other assets on credit.

Cash Payments Journal

A cash payments journal is a financial journal that records all cash outflows or payments made by a business.

Special Journal

A type of accounting journal dedicated to recording specific types of transactions, such as sales or purchases, to increase efficiency.