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.

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Definitions:

Competing Objectives

Divergent or opposing goals among individuals or groups within an organization, often leading to challenges in decision-making and prioritization.

Dependent

In a research context, the dependent variable is the one being tested and measured, often to see how it is influenced by changes in an independent variable.

Office Cubicles

Semi-private working spaces divided by partitions, commonly used in offices to provide employees with a personal workspace.

Small-team Interactions

Dynamics and communication processes within small groups, focusing on collaboration, decision-making, and problem-solving in a close-knit setting.