Question No 23:
A five year investment project has a positive net present value of $320,000 when discounted at the cost of capital of 10% per annum. The project includes annual net cash inflows of $100,000 which occur at the end of each of the five years.
The percentage reduction in the annual net cash inflow that would result in the project not being financially viable is:
A. 31.25%
B. 118.5%
C. 84.4%
D. 18.5%
Answer: C
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