If the Net Present Value of a Project Which Costs

question 97

Multiple Choice

If the net present value of a project which costs $20,000 is $5,000 when the discount rate is 10 percent, then the:

• A)project's IRR equals 10 percent.
• B)project's internal rate of return is greater than 10 percent.
• C)net present value of the cash inflows is $4,500.
• D)project's cash inflows total $25,000.

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Definitions:

Management Teams

Groups of individuals who coordinate to make decisions and guide organizations towards achieving their goals and objectives.

Project Teams

Groups of individuals brought together to work on a specific project, typically with complementary skills and a common goal.

Advisory Teams

Groups formed to provide expert advice and guidance on specific matters, leveraging specialized knowledge to inform decision-making.

Mental Models

Internal representations of reality that people use to understand and interact with the world around them.