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:

Technological Change

The innovation and development of new technologies or the improvement of existing ones, impacting how we live and work.

Product Life Cycles

This refers to the progression of products through developmental and market phases, from their conception and launch to their growth, maturation, and eventual phase-out.

Interactive Television

A system that allows viewers to interact with the television content in real-time, often through voting, shopping, or selecting what to watch.

High-Learning

Refers to the ability or process of acquiring knowledge or skills at a rapid pace.