You Are Analyzing a Project and Have Prepared the Following

question 82

Multiple Choice

You are analyzing a project and have prepared the following data: Required payback period 2.5 years
Required return 8.50%
Based on the net present value of _______ for this project,you should _______ the project.

• A) -$2,021.28; reject
• B) -$406.19; reject
• C) $7,978.72; accept
• D) $9,836.74; accept
• E) $12,684.23; accept

---

Definitions:

Assets

Resources owned by a company or individual, having economic value and expected to provide future benefits.