Suppose You Have a Project Whose Discounted Payback Is Equal

question 13

Multiple Choice

Suppose you have a project whose discounted payback is equal to its termination date. What can you say for sure about its PI?

• A) The discounted payback will be greater than zero.
• B) It will have a PI and NPV of zero.
• C) The NPV and IRR will yield the same decision.
• D) The IRR will just equal the cost of capital.

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Definitions:

Transamination

A biochemical process by which an amino group from one amino acid is transferred to a keto acid, forming a new amino acid.

Metabolized

The process by which substances are transformed within the body, often into energy or components for growth and repair.

Glucose

A basic form of sugar that serves as a crucial source of energy in living beings and is a constituent of numerous carbohydrates.

Amino Acids

Organic compounds that serve as the building blocks of proteins, necessary for health and vital processes in the body.