A Project Costing $218,000 Has Equal Annual Cash Inflows Over

A project costing $218,000 has equal annual cash inflows over its 7-year life.If the discounted payback period is seven years and the discount rate is zero percent,what is the amount of the cash flow in each of the seven years?

A) $31,142.86 per year for each of the seven years
B) $0 for Years 1 to 6 and $218,000 in Year 7
C) Any amount between $0 and $218,000 for any one year,provided the sum of the seven cash flows totals $218,000.
D) $218,000 for Year 1 and $0 for Years 2 through 7.
E) $0 for each of the seven years

Correct Answer:

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