A Firm Is Considering a Project with Annual Cash Flows

question 16

Multiple Choice

A firm is considering a project with annual cash flows of £120,000. The project would have an 8-year life, and the company uses a discount rate of 12 per cent. What is the maximum amount the company could invest in the project and the project still be acceptable?

• A)£488,740
• B)£562,614
• C)£580,291
• D)£596,160

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Definitions:

Extroversion

A personality trait that is characterized by sociability, talkativeness, assertiveness, and a high level of energy when interacting with others.

Personality Dimensions

Fundamental traits or characteristics that are used to describe and differentiate individuals' personalities.

MARS Model

A framework that outlines the four factors necessary for successful employee performance: Motivation, Ability, Role perceptions, and Situational factors.

Employee Performance

The evaluation of the efficiency and effectiveness of an employee's work conduct and output, often measured against pre-defined criteria or objectives.