A Project Analysis Using the Net Present Value Method Indicates

question 106

Multiple Choice

A project analysis using the net present value method indicates that the present value of cash inflows is $120,000, and the total amount of investment required at the start of the project is $100,000.Which of the following statements best describes the results of the project analysis?

• A) The project should be accepted because the actual rate of return expected from the project is more than the minimum desired rate of return.
• B) The project should be accepted because the actual rate of return expected from the project is less than the minimum desired rate of return.
• C) The project should be rejected because the actual rate of return expected from the project is more than the minimum desired rate of return.
• D) The project should be rejected because the actual rate of return expected from the project is less than the minimum desired rate of return.

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Definitions:

Plant Hormone

Chemical substances produced within plants that regulate growth, development, and other physiological processes.

Adenine

A purine nucleobase used in the formation of DNA and RNA, paired with thymine in DNA and uracil in RNA.

Plant Hormone

Naturally occurring compounds in plants that regulate growth, development, and responses to stimuli.

Senescence

The process of aging which leads to the gradual deterioration of cellular function and organismal physiology over time.