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.