A Company Is Considering a Project with an Annual Cash

Question 88
Multiple Choice

A company is considering a project with an annual cash flow of $400,000. The project would have a seven-year life, and the company uses a discount rate of 10%. What is the maximum amount the company could invest in the project and have the project still be acceptable? A) $200,000 B) $718,200 C) $1,400,000 D) $1,947,200