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.

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Definitions:

Efficiency

a measure of how effectively resources (such as time, money, and labor) are used to achieve a goal or output, often with the aim of minimizing waste and maximizing productivity.

Equity

In finance, refers to the ownership interest in a corporation in the form of common stock or preferred stock; in social justice, refers to fairness and justice in treatment, opportunities, and resources.

Voice

The mechanism by which employees can express concerns, opinions, or grievances in the workplace, leading to constructive dialogue and potential improvements in working conditions, policies, or practices.

Unitarist

A perspective within industrial relations that views the organization as an integrated and harmonious whole, where management and staff share common objectives.