Forever Clean Corporation Is Considering a Project with Annual After-Tax

question 51

Multiple Choice

Forever Clean Corporation is considering a project with annual after-tax cash flows of $6000 per year for 6 years. The company's cost of capital is 6%. Using the net present value method, what is the maximum amount that the company should invest? (Round to the nearest whole dollar) .

• A) $24 000
• B) $25 380
• C) $29 504
• D) $36 000

---

Definitions:

Nearest Whole Number

A rounding of a number to the closest integer, without any decimal part.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish and measure progress against these objectives.

Performance Measures

Metrics or indicators used to assess the efficiency, effectiveness, and success of an organization's activities.

Net Operating Income

The profit generated from a company's everyday business operations, calculated by subtracting total operating expenses from total revenue.