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:

Service Provider

A company or individual that offers services to others in exchange for payment.

Loyalty Program

A marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program by offering rewards, discounts, or other incentives.

Repeat Purchases

The act of buying a product or service again, demonstrating customer loyalty and satisfaction with the previous purchase.

Premium

An amount paid for an insurance policy or an additional cost for an item or service that is of higher quality or offers more features than a standard version.