Maude Company's required rate of return on capital budgeting projects is 9%. The company is considering an

Question:

Maude Company's required rate of return on projects is 9%. The company is considering an investment which would yield a cash flow of $12,000 per year for five years. Ignoring taxes, what is the most that the company would be willing to invest in this project?
A. $60,000
B. $55,046
C. $46,674
D. $38,994
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...