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Managerial Accounting question: A firm is considering a project with annual cash flows of $40,000. The project would have a 10-year life, and the company
Managerial Accounting question:
A firm is considering a project with annual cash flows of $40,000. The project would have a 10-year life, and the company uses a discount rate of 8 percent. What is the maximum amount the company could invest in the project and the project still be acceptable?
| $268,400 |
| $363,600 |
| $203,200 |
| $400,000 |
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