An Investment Will Return Net After-Tax Cash Inflows of $8

question 15

Multiple Choice

An investment will return net after-tax cash inflows of $8 000 per year for 6 years. The desired rate of return is 14%. What is the total present value of the future cash flows?

• A) $27 464.80
• B) $31 109.60
• C) $21 868.80
• D) $48 000.00

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Definitions:

Goal setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Negotiations fail

Occurrences when discussions or talks break down without reaching an agreement, due to various reasons such as misunderstandings, lack of compromise, or conflicting interests.

Clear objectives

Objectives that are plainly defined, unambiguous, and easy to understand, facilitating more focused and effective action.

Issues

Issues in negotiations are the points of discussion, dispute, or interest that need to be resolved or agreed upon by the parties involved in the negotiation process.