Which of the Following Should Be Assumed About a Project

question 32

Multiple Choice

Which of the following should be assumed about a project that requires a $100,000 investment at time-period zero, then returns $20,000 annually for five years?

• A)the NPV is negative
• B)the NPV is zero
• C)the profitability index is 1.0
• D)the IRR is negative

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Definitions:

Arthropods

Arthropods are a phylum of invertebrate animals with exoskeletons, segmented bodies, and jointed limbs, including insects, arachnids, and crustaceans.

Synapomorphies

Shared derived characters or traits that are used to determine evolutionary relationships among organisms.

Exoskeletons

External skeletons that support and protect an organism's body, found in arthropods like insects, crabs, and lobsters.

Marsupial Colonization

The process by which marsupials, a group of mammals typically characterized by premature birth and continued development in the mother's pouch, spread and establish populations in new areas.