Which of the Following Statements Is True for a Project

question 13

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:

Perceptual Setting

The context or environment that influences an individual’s perception or interpretation of information.

Physical

Relating to things perceived through the senses as opposed to the mind; tangible or concrete.

Social

Pertains to activities, processes, or phenomena that involve interactions between individuals or groups in a society.

Intensity

The degree of strength, force, or concentration applied in a specific action, situation, or characteristic.