question archive A cost-cutting project has an initial cost of $1,200 and annual costs of $380 for each year of the project's 4-year life
A cost-cutting project has an initial cost of $1,200 and annual costs of $380 for each year of the project's 4-year life
Subject:AccountingPrice: Bought3
A cost-cutting project has an initial cost of $1,200 and annual costs of $380 for each year of the project's 4-year life. The equivalent annual cost for this project is best described as the:
4-year annuity payment that has the same net present value as the project's costs given a stated discount rate.
4-year total of all costs divided by four. annual sales needed to offset these additional costs.
lump sum payment at Time 0 that is equal to these additional costs at a given discount rate.
4-year average aftertax cash flow resulting from the annual costs.
