Walla, Inc. may invest $6 million in a Buffalo harvesting project. Annual costs and revenues, starting next year, are forecasted to be $1 million and $0.7 million, growing at 0.0% and 3.0%, respectively

If the opportunity cost of capital is 4.5%, what is the investment trigger price?
A) $19.25 million
B) $21.25 million
C) $23.25 million
D) $25.25 million

C

Business

You might also like to view...

For a given rate of discount, the further in the future a cash flow is to be paid, the lower the present value.

a. true b. false

Business

Profit-oriented pricing objectives include:

a. target return on investment. b. target market share. c. sales maximization. d. status quo pricing.

Business