You Are Analyzing a Project and Have Prepared the Following

question 76

Multiple Choice

You are analyzing a project and have prepared the following data: $$\begin{array} { | l | l | } \hline \text { Year } & \text { Cad Flow } \\\hline 0 & -£ 169,000 \\\hline 1 & £ 46,200 \\\hline 2 & £ 87,300 \\\hline 3 & £41,000 \\\hline 4 & £ 39,000 \\\hline\end{array}$$ Required payback period: 2.5 years
Required AAR: 7.25%
Required return: 8.50%
Based on the net present value of _____for this project,you should _____ the project.

• A)-£2,021.28; reject
• B)-£406.19; reject
• C)£7,978.72; accept
• D)£9,836.74; accept
• E)£12,684.23; accept

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Definitions:

Open-ended

Describes questions or formats that do not have a predefined range of answers, allowing for unrestricted responses.

Objective

Based on facts, independent of personal feelings or biases.

Respondent

An individual who answers questions or provides data as part of a survey or study.

Secondary Data

Information that has been previously collected and analyzed by others, utilized in research for purposes different from those for which the data were initially gathered.