19. Blue Company's required rate of return on capital budgeting projects is 12%. The company is considering an investment opportunity that would yield a cash flow of $10,000 in five years. What is the most that the company should be willing to invest in this project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $17,637 b. $36,050 c. $2,774 d. $5,674

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...
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19.

Blue Company's required rate of return on capital budgeting projects is 12%. The company is considering an investment opportunity that would yield a cash flow of $10,000 in five years. What is the most that the company should be willing to invest in this project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.)
Select one:
a. $17,637
b. $36,050
c. $2,774
d. $5,674
 
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