If the Net Present Value of a Project Which Costs

question 82

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

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