Which of the Following Statements Is True for a Project

question 55

Multiple Choice

Which of the following statements is true for a project with $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 roughly 3 1/2 years.
• B) Its NPV is $2,194.
• C) Its IRR is 1.85%.
• D)Its profitability index is 0.109