In the table below you have information concerning a project, (t) represents the year, (r) is the interest rate for the project. The discounted Return on Investment (ROI) of the project is 175%. What is the cash inflow for the second year? t=1 t=2 Ir 0.100 0.100 cash outflow 30000.000 30000.000 cash inflow 80000.000 ??

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5TP: Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The...
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In the table below you have information concerning a project, (t) represents the year, (r) is the interest rate for
the project. The discounted Return on Investment (ROI) of the project is 175%. What is the cash inflow for
the second year?
t=1
0.100
cash outflow 30000.000 30000.000
80000.000
t=2
r
0.100
cash inflow
??
Select one:
O a. 75000
O b. 70000
O c. 80000
O d. 65000
Transcribed Image Text:In the table below you have information concerning a project, (t) represents the year, (r) is the interest rate for the project. The discounted Return on Investment (ROI) of the project is 175%. What is the cash inflow for the second year? t=1 0.100 cash outflow 30000.000 30000.000 80000.000 t=2 r 0.100 cash inflow ?? Select one: O a. 75000 O b. 70000 O c. 80000 O d. 65000
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