Which of the Following Statements Is Most Likely Correct for a Project

question 105

Multiple Choice

Which of the following statements is most likely correct for a project costing $50,000 and returning $14,000 per year for five years?

• A)NPV = $3,071.01
• B)NPV = $20,000
• C)IRR = 2.8 percent
• D)IRR is greater than 10 percent

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Definitions:

Three Figure Accuracy

Refers to rounding numerical values to three significant figures for precision in calculations or reporting.

Pair of Equations

Two mathematical equations set up in relation to each other, often used to find the values of two unknown variables by solving them simultaneously.

Graphically

In a manner that uses diagrams, charts, maps, or other visual representations to explain or illustrate.

Set of Equations

A group of equations that are solved together, where each equation may have multiple variables.