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.

Understand the effects of leadership styles on organizational outcomes such as performance and employee satisfaction.

Recognize the importance and effect of individualized consideration and management by exception in leadership.

Understand the role of contingent reward and punishment behaviors in leadership.

Appreciate the concept of LMX differentiation and its impact on group dynamics and performance.

---

Definitions:

Debt-Equity Ratio

A measure that indicates the balance between equity contributed by shareholders and debt employed to finance company assets.

Return On Equity

A gauge of corporate profitability that indicates the profit made from the investments of its shareholders.

Return On Assets

A financial ratio that indicates the percentage of profit a company earns in relation to its overall resources. It demonstrates how effectively a company is using its assets to generate earnings.

Average Collection Period

A measure of the average number of days it takes a company to collect payments from its credit sales.