A Project Has an Initial Cost of $26,000,a Discount Rate

question 49

Multiple Choice

A project has an initial cost of $26,000,a discount rate of 11.7 percent,a life of 5 years,and an NPV of $11,216.Given this,you know that the project is expected to earn a return:

• A)equal to 11.7 percent of $26,000 plus an additional $11,216.
• B)of $11,216 in total.
• C)equal to 11.7 percent of $37,216 (= $26,000 + 11,216).
• D)of 11.7 percent of $11,216.
• E)of $26,000 minus $11,216.

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Definitions:

Eukarya

A domain of life consisting of organisms with cells that contain a nucleus, including animals, plants, fungi, and protists.

Consumers

Organisms that obtain energy by consuming other organisms or organic matter, as opposed to producing their own energy through photosynthesis or chemosynthesis.

Decomposed

The process by which organic substances are broken down into simpler organic or inorganic matter, primarily by the actions of microorganisms.

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.