Suppose You Have a Project Whose Discounted Payback Is Equal

question 13

Multiple Choice

Suppose you have a project whose discounted payback is equal to its termination date. What can you say for sure about its PI?

• A) The discounted payback will be greater than zero.
• B) It will have a PI and NPV of zero.
• C) The NPV and IRR will yield the same decision.
• D) The IRR will just equal the cost of capital.

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins.

Electron-Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane.

Glycolysis

A series of reactions that break down glucose to produce energy in the form of ATP, taking place in the cytoplasm of cells.

Electron-Transport Chain

A series of electron carriers located in the mitochondrial membrane, involved in the production of ATP through the process of oxidative phosphorylation.