A project has annual income exclusive of depreciation of $80,000. The annual rate of return is 15% and annual depreciation is $20,000. There is no salvage value. The internal rate of return is 12%. The initial cost of the project was
A) $400,000.
B) $500,000.
C) $1,000,000.
D) $800,000.

Question

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The Answer of A project has annual income exclusive of depreciation of $80,000. The annual rate of return is 15% and annual depreciation is $20,000. There is no salvage value. The internal rate of return is 12%. The initial cost of the project was
A) $400,000.
B) $500,000.
C) $1,000,000.
D) $800,000.

A Project Has Annual Income Exclusive of Depreciation of $80,000