The Following Information Pertains to an Investment: What Is the Present

question 60

Multiple Choice

The following information pertains to an investment: What is the present value of the annual cash flow (rounded to the nearest whole number) ?
$$\begin{array} { l r } \text { Investment } & \$ 140,000 \\\text { Annual revenues } & \$ 96,000 \\\text { Annual variable costs } & \$ 32,000 \\\text { Annual fixed out-of-pocket costs } & \$ 20,000 \\\text { Discount rate } & 12 \% \\\text { Expected life of project } & 8 \text { years }\end{array}$$

• A)$136,822
• B)$152,538
• C)$204,884
• D)$218,592

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Definitions:

Reproductive Capacity

The ability of an individual or species to produce offspring, encompassing all biological functions related to reproduction.

Homosexuals

People who seek emotional-sexual relationships with members of the same gender.

Physical Attractiveness

The degree to which a person’s physical traits are considered aesthetically pleasing or beautiful.

Plays A Major

Holds significant importance or role in the context it applies to, contributing crucially to an outcome or situation.