Which of the Following Statements Is True for a Project

question 6

Multiple Choice

Which of the following statements is true for a project with $20,000 initial cost, cash inflows of $5,800 per year for six years, and a discount rate of 15 percent?

• A)its payback period is roughly 3 1/2 years.
• B)its NPV is $2,194.
• C)its IRR is 1.85 percent.
• D)its profitability index is 0.109.