Which One of the Following Should Be Assumed About a Project

question 13

Multiple Choice

Which one of the following should be assumed about a project that requires a $100,000 investment at time zero,then returns $20,000 annually for 5 years?

• A) The NPV is negative.
• B) The NPV is zero.
• C) The profitability index is 1.0.
• D) The IRR is negative.

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Definitions:

Organized

The state or condition of being systematically arranged and structured, often referring to ordered and efficient setups in biological, social, or physical systems.

Mitochondria

Organelles found in the cells of nearly all eukaryotic organisms, responsible for producing energy through cellular respiration.

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, acting as a universal energy currency for cellular processes.

Laws of Physics

The laws of physics are the fundamental principles that describe the behavior of the physical universe, including concepts of energy, motion, forces, and matter interactions.