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Approximately How Much Was Paid to Invest in a Project

Question 30

Multiple Choice

Approximately how much was paid to invest in a project that has an NPV break-even level of sales of $5 million, cash flows determined by: .1
*sales - $300,000, a six-year life, and an 8 percent discount rate?


A) $416,667
B) $924,500
C) $1,016,678
D) $2,311,450 PV (cash flows) = investment

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