Bern & Sons Invested in a Project That Cost $100,000

question 42

Multiple Choice

Bern & Sons invested in a project that cost $100,000. It had a net present value of $15,975 and a useful life of 8 years. The firm uses a 14% discount rate, and the project has an internal rate of return of 16%. What are the annual cost savings provided by the project?

• A) $25,000
• B) $26,698
• C) $9,263
• D) $8,600

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Definitions:

Positive Attitude

A mental outlook of optimism and of expecting good outcomes, which can positively affect one's mental and physical wellbeing.

Hardiness

A personality trait characterized by resilience and the ability to endure stressful situations with a positive outlook.

Sedentary Lifestyle

A way of life involving little to no physical activity, often linked to negative health outcomes such as obesity, type 2 diabetes, and cardiovascular disease.

Low-intensity Aerobic

Exercise activities that increase the heart rate while maintaining a moderate level of effort, typically sustained over longer periods.