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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