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.

---

Definitions:

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the true value of an unknown population parameter with a specified level of confidence.

Sample Size

The number of participants, observations, or data points collected in a study, important for ensuring the statistical validity and reliability of the research findings.

Larger Sample Size

A methodological strategy in research that involves increasing the number of participants to enhance the reliability and validity of the study's outcomes.

Cluster Sampling

A method of sampling in which the population is segmented into different groups, and from these groups, a few are randomly chosen for analysis.