A Project Costs $12,500 to Initiate

question 347

Multiple Choice

A project costs $12,500 to initiate. Cash flows are estimated as $2,500 a year for the first two years and $3,100 a year for the next three years. The discount rate is 11.25%. The net present value for this project is _____ and the internal rate of return is _________ the discount rate.

• A) -$2,138.52; more than
• B) -$2,138.52; less than
• C) $1,800.00; more than
• D) $1,800.00; less than
• E) $2,138.52; less than

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Definitions:

Dramatic

Pertaining to drama or performance, or characterized by emotional, exciting, or unexpected events or circumstances.

Cluster B

Dramatic or emotional personality disorders; “wild” or “bad.”

Psychopathology

The study of mental disorders, focusing on the diagnosis, treatment, and understanding of psychological dysfunction and distress.

Personality Disorders

Extreme and inflexible personality configurations that lead to significant impairment.