An Investment Cost $8,000 with Expected Cash Flows of $3,000

question 51

Multiple Choice

An investment cost $8,000 with expected cash flows of $3,000 for 5 years.The discount rate is 15.2382%.The NPV is ___ and the IRR is ___ for the project.

• A)$0; 15.2382%
• B)$3.33; 27.2242%
• C)$2,000; 25.4130%
• D)Can not answer without one or the other value as input
• E)None of the above

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Definitions:

Normal Faulting

A type of faulting in which the hangwall moves downward relative to the footwall, often associated with tensional forces pulling the Earth's crust apart.

Volcanic Neck

A column of solidified lava or magma that formed in the vent of a volcano and became exposed through erosion.

Igneous Feature

A geological formation that results from the solidification and crystallization of magma or lava, such as volcanoes or granite intrusions.

Batholith

A large mass of intrusive igneous rock, often granitic, that has solidified deep in the Earth's crust.