Which of the Following Statements Is True for a Project

question 62

Multiple Choice

Which of the following statements is true for a project with a $20,000 initial cost, cash inflows of $5,800 per year for 6 years, and a discount rate of 15%?

• A) Its payback period is 3.45 years.
• B) Its NPV is $2,094.
• C) Its IRR is 17.85%.
• D)Its profitability index is 0.104.

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Definitions:

HIV

A virus known as Human Immunodeficiency Virus targets the immune system and may result in acquired immunodeficiency syndrome (AIDS) without treatment.

Bottle Feeding

The method of feeding babies with milk or formula from a bottle, as opposed to breastfeeding.

HAART

Highly Active Antiretroviral Therapy, a treatment regimen for HIV/AIDS designed to reduce the viral load in the body to undetectable levels.

Pre-eclampsia

A pregnancy complication characterized by high blood pressure and signs of damage to another organ system, most often the liver and kidneys.