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.

---

Definitions:

Branching Map

A diagram that visually represents a set of relationships between different concepts or entities in a hierarchical or branching manner.

Context

The circumstances or setting surrounding an event, statement, or idea which can affect its meaning or understanding.

Parts

Components or pieces that, when combined, form a complete unit or system.

New Word

A term or expression recently coined or adopted into a language.