Use the Information for the Question(s)below

question 12

Multiple Choice

Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard.Development will take Boulderado four years and cost $250,000 per year,with the first of the four equal investments payable today upon acceptance of the project.Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years.Boulderado's discount rate is 10%.
-The NPV profile:

• A)shows the payback period-the point at which NPV is positive.
• B)shows the internal rate of return-the point at which NPV is zero.
• C)shows the NPV over a range of discount rates.
• D)B and C are correct.

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Definitions:

Source Code

The fundamental set of instructions and statements written in a programming language that is compiled or interpreted to create executable software.

SDLC

Stands for Software Development Life Cycle, a process for planning, creating, testing, and deploying an information system.

Feasibility Study

An analysis and evaluation of a proposed project to determine if it is technically, financially, and legally possible.

Planning Phase

The initial stage of a project or process where goals are defined, strategies are developed, and tasks are planned.