Would You Invest in a Project That Has a Net

question 37

Multiple Choice

Would you invest in a project that has a net investment of $14,600 and a single net cash flow of $24,900 in 5 years, if your required rate of return was 12%?

• A) Yes, as the NPV is $862.90.
• B) No, as the NPV is -$1,975.70.
• C) No, as the NPV is -$481.70.
• D) Yes, as the NPV is $165.70.

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Definitions:

Epicenter

The point on the Earth's surface directly above the focus of an earthquake, where the seismic waves are felt most strongly.

Seismograms

The recorded output of a seismograph, which shows the motion of the ground during an earthquake or other seismic event.

Nomogram

A graphical calculating device, a two-dimensional diagram designed to allow the approximate graphical computation of a function.

Seismic Station

A facility equipped with instruments for detecting and recording earthquakes and other ground vibrations.