Which of the Following Should Be Assumed About a Project

question 53

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 zero

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Definitions:

Third-party Surveys

Research or assessments conducted by an external organization that is not directly involved with the subjects being studied.

In-house Survey

A survey conducted internally within an organization to gather feedback or information from employees or departments.

Compa-ratio

A metric comparing an individual's salary to the midpoint of the market rate for similar positions.

Pay Dispersion

The extent to which salaries vary within a company or organization, often measured by the difference between the highest and lowest paid positions.