Multiple Choice
A firm is considering a project with an annual cash flow of £240,000. The project would have an 8-year life, and the company uses a discount rate of 12 per cent. Ignoring income taxes, what is the maximum amount the company could invest in the project and have the project still be acceptable (rounded) ?
A) £977,480
B) £1,125,228
C) £1,160,582
D) £1,192,320
Correct Answer:
Verified
Correct Answer:
Verified
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