If the Net Present Value of the Investment Is $8,510

question 63

Multiple Choice

If the net present value of the investment is $8,510, then:

• A) the rate of return is less than the cost of capital.
• B) the present value of the cash flows are more than the investment.
• C) the cost of capital is higher than the internal rate of return.
• D) the present value of the cash flows is $8,510 less than the investment.

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Definitions:

Hourly Wage Rate

The amount of money paid for each hour of work performed, typically associated with part-time or contractual employment.

Gross Pay

The total compensation a person receives before any deductions or taxes are taken out.

Medicare Tax Rate

The percentage of an individual's or employer's earnings that is contributed to Medicare, a U.S. federal health insurance program.

Hourly Wage Rate

The amount of money paid for each hour of work.