An Investment Cost $12,000 with Expected Cash Flows of $4,000

question 22

Multiple Choice

An investment cost $12,000 with expected cash flows of $4,000 for 4 years. The discount rate is 15.2382%. The NPV is ______ and the IRR is ______ for the project.

• A) -$634.89; 12.60%
• B) $0; 15.2382%
• C) $4,000; 0%
• D) Can not answer without one or the other value as input.
• E) None of these.

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Definitions:

Reaction Rate

The speed at which reactants are converted into products in a chemical reaction.

Activation Energy

The minimum amount of energy required to initiate a chemical reaction, determining the reaction rate.

Arrhenius Equation

A formula that gives the rate of a reaction as a function of temperature, providing a basis for understanding temperature effects on reaction rate constants.

Transition State

A high-energy configuration of atoms during a chemical reaction that represents the point of highest energy along the reaction path.