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:

Pulmonary Fibrosis

A lung disease that occurs when lung tissue becomes damaged and scarred, making it difficult for lungs to work properly.

Pleurisy

An inflammation of the pleura, the two layers of membranes surrounding the lungs and lining the chest cavity.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing.

Bronchioles

Small airways in the lungs that lead from the bronchi to the alveolar sacs, responsible for carrying air in and out of the lungs during respiration.