A Firm Is Considering a Project with an Annual Cash

question 53

Multiple Choice

A firm is considering a project with an annual cash flow of $160,000.The project would have a 10-year life,and the company uses a discount rate of 8%.What is the maximum amount the company could invest in the project and have the project still be acceptable (rounded to the nearest whole number) ?

• A)$406,420
• B)$671,000
• C)$727,208
• D)$800,000

---

Definitions:

Own Children

A term referring to one's biological or legally adopted children.

Cognitive Conflict

A psychological state resulting from the confrontation of contradictory information, beliefs, or perceptions, which can lead to cognitive dissonance and the motivation to change one's thoughts or behaviors.

Assimilation

The cognitive process of fitting new information into existing cognitive schemas, perceptions, and understanding.

Accommodation

In cognitive psychology, the process of altering one's existing schemas, or ways of thinking, as a result of new information or experiences.