Bern Company invested in a project that cost $100,000. It had a net present value of $15,975 and a useful life of 8 years. The firm uses a 14% discount rate, and the project has an internal rate of return of 16%. What are the annual cost savings provided by the project?
A) $25,000
B) $26,698
C) $9,263
D) $8,600

Question

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The Answer of Bern Company invested in a project that cost $100,000. It had a net present value of $15,975 and a useful life of 8 years. The firm uses a 14% discount rate, and the project has an internal rate of return of 16%. What are the annual cost savings provided by the project?
A) $25,000
B) $26,698
C) $9,263
D) $8,600

Bern Company Invested in a Project That Cost $100,000