InfoLabs, a communications company, launches a project at a fixed cost of $180,000. What is the savings of the project if it returns the investment in 3 years?
A) $5,000 per month
B) $10,000 per quarter
C) $15,000 in 6 months
D) $40,000 in a year

Question

Quizplus · Accepted Answer

To calculate the savings of the project if it returns the investment in 3 years, we need to first calculate the total income generated by the project over 3 years.

Assuming a linear income generation, the monthly income generated by the project would be:

Total income generated = $180,000 / 36 months = $5,000 per month

Therefore, the best choice is A) $5,000 per month as it represents the sustainable monthly income generated by the project, which would cover the initial investment and also provide additional savings.

InfoLabs, a Communications Company, Launches a Project at a Fixed