The BobIU Computer Graphics Co

question 25

Multiple Choice

The BobIU Computer Graphics Co. has just produced a new multimedia graphics chip which will cost $6,000,000 this year to put into production. They anticipate net cash flows of $3 million next year, $2million, $1 million, $.5 million, $.25 million and then $0 over each of the following years. The two owners require a 15% return on their investment. The value of this investment to the firm is:

• A) $750,000.10
• B) -$811,329.97
• C) $556,462.71
• D) $652,173.91
• E) -$371,782.85

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Definitions:

Compressor Pumping

The action of a compressor moving fluid or gas through a system, such as in refrigeration or HVAC systems.

Oil Drain Ports

Specifically designed openings in an engine or machinery used for the drainage of oil, facilitating regular maintenance and oil changes.

Free-stroke Limit

The maximum allowable distance a linkage or component (such as a clutch pedal) can move without engaging or affecting the operation of the mechanism.

Clamp-type

A fastening device or mechanism that holds objects tightly together to prevent movement or separation, utilizing a clamping action.