Shields Company Has Gathered the Following Data on a Proposed

question 102

Multiple Choice

Shields Company has gathered the following data on a proposed investment project:
$\begin{array}{|l|r|}\hline \text { Investment Required in Equipment } & \$ 400,000 \\\hline \text { Annual Cash Inflows } & \$ 80,000 \\\hline \text { Salvage Value } & \$-0- \\\hline \text { Life of the Investment } & 10 \text { years } \\\hline \text { Discount Rate } & 10 \% \\\hline\end{array}$
(Ignore income taxes in this problem.)
-( The net present value on this investment is closest to which of the following? (Do not round your intermediate calculations.)

• A) $76,750.
• B) $80,000.
• C) $91,565.
• D) $400,000.

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Definitions:

Friendships

A mutual relationship between two people who hold mutual affection for each other.

Community Resources

Various supports, services, and facilities available within a community that can be utilized to improve the quality of life for its members, including libraries, parks, educational programs, and health clinics.

School Policies

Regulations and principles set by academic institutions to control actions and processes within the educational setting.

Geographic Area

A specific physical region or location defined by natural or artificial boundaries.