Multiple Choice
What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10 percent?
A) $20,000.00
B) $21,356.95
C) $22,618.83
D) $25,237.66 NPV = 40,000 + 10,000
Correct Answer:
Verified
Correct Answer:
Verified
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