If the Net Present Value of a Project That Costs

question 28

Multiple Choice

If the net present value of a project that costs $20,000 is $5,000 when the discount rate is 10%,then the:

• A) project's IRR equals 10%.
• B) project's rate of return is greater than 10%.
• C) net present value of the cash inflows is $4,500.
• D) project's cash inflows total $25,000.

---

Definitions:

1916

A year during the First World War, marked by significant military events and battles.

North African Colony

Territories in North Africa that were under the control of foreign powers, particularly during the era of European colonialism.

France

A Western European country known for its rich history, cultural influence, and significant contributions to art, science, and philosophy.

Germany

A country in Central Europe known for its history, culture, economic power, and significant contributions to art, science, and philosophy.