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A firm is considering a project with an annual cash flow of $200,000. The project would have a 7-year life, and the company uses a

A firm is considering a project with an annual cash flow of $200,000. The project would have a 7-year life, and the company uses a discount rate of 10 percent. Ignoring income taxes, what is the maximum amount the company could invest in the project and have the project still be acceptable?

a. $718,200
b. $1,400,000
c. $200,000
d. $973,600

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