Multiple Choice
A firm is considering a project with annual cash flows of £40,000. The project would have a 10-year life, and the company uses a discount rate of 8 per cent. What is the maximum amount the company could invest in the project and the project still be acceptable?
A) £400,000
B) £268,400
C) £203,200
D) £363,600
Correct Answer:
Verified
Correct Answer:
Verified
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