Multiple Choice
A firm is considering a project with an annual cash flow of $80,000. The project would have a 10-year life, and the company uses a discount rate of 8 percent. Ignoring income taxes, what is the maximum amount the company could invest in the project and have the project still be acceptable (rounded) ?
A) $800,000
B) $536,800
C) $406,420
D) $727,208
Correct Answer:
Verified
Correct Answer:
Verified
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