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:

Independent

Not influenced or controlled by others; in statistics, refers to variables that are not affected by other variables in the analysis.

Blood Types

Categories of blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

Group

A number of individuals assembled together or having some unifying relationship.

Independent

A term in statistics indicating that two variables have no association or influence on each other.