An Investment Cost £10,000 with Expected Cash flOws of £3,000

question 72

Multiple Choice

An investment cost £10,000 with expected cash flows of £3,000 for 5 years.The discount rate is 15.2382%.The NPV is ___ and the IRR is ___ for the project.

• A)£0; 15.2382%
• B)£3.33; 27.2242%
• C)£5,000; 0%
• D)Can not answer without one or the other value as input.
• E)None of the above.

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Definitions:

Symbolic Notation

A system of symbols used to represent numbers, quantities, elements, operations, or concepts.

Atomic Statements

Simple declarations about properties or relationships between entities that cannot be further broken down into more fundamental statements.

Main Components

The primary or most important parts that make up a machine, system, or whole.

Connectives

Words or phrases that are used to connect words, phrases, clauses, or sentences, such as "and", "but", and "because".