Which of the Following Statements Is True for a Project

question 92

Multiple Choice

Which of the following statements is true for a project with a $20,000 initial cost,cash inflows of $6,667 per year for 6 years,and a discount rate of 15%?

• A) Its payback period is 3 years.
• B) Its NPV is $2,094.
• C) Its IRR is 17.85%.
• D) Its profitability index is 0.104.

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Definitions:

Medical Office

A facility where doctors and other healthcare professionals provide medical services, conduct consultations, and manage patient care.

Soiled Linen Cloths

Linens that have been used and contaminated with substances such as bodily fluids and require cleaning or proper disposal.

Biohazard-Labeled Bag

A bag specifically designed to collect and dispose of materials contaminated with substances considered hazardous to health.

Examination Room

An examination room is a designated space in a healthcare facility where medical professionals conduct patient evaluations and procedures.