Miller River Light Is Evaluating a Project That Will Require

question 32

Multiple Choice

Miller River Light is evaluating a project that will require an initial investment of $350,000. Miller River uses a 12% discount rate for capital projects of this type. What level of operating cash flows over a period of 5 years will cause the project to reach break-even NPV? Assume cash flows come in the form of an end-of-the-year annuity.

• A) $70,000.00
• B) $97,093.41
• C) $92,329.12
• D) $86,690.54

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Definitions:

Cognitive-behavioral Theorists

Scholars who study and develop therapies based on the idea that cognitive processes influence behavior and emotions, and that altering these processes can lead to change.

Traumatic Event

An incident that causes physical, emotional, or psychological distress or harm, and is experienced as extremely stressful or disturbing.

Negative Thoughts

Involves pessimistic or adverse thoughts that can be detrimental to one’s mental health.

Higher Power

A spiritual entity or force greater than oneself that individuals may seek connection with, often used in contexts of recovery and personal growth.