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A Proposed New Venture Will Cost $175,000 and Should Produce

Question 93

Multiple Choice

A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection?


A) A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection? A) B) C) D) E)
B) A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection? A) B) C) D) E)
C) A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection? A) B) C) D) E)
D) A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection? A) B) C) D) E)
E) A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500,$85,000,$40,000,and $40,000 for Years 1 to 4,respectively.The required payback period is 3 years and the discounted payback period is 3.5 years.The required rate of return is 9 percent.Which methods indicate project acceptance and which indicate project rejection? A) B) C) D) E)

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