Use the Table for the Question(s)below

question 77

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows:

-Given the cash flows in the table above, the point at which the NPV profile crosses the vertical axis is

• A)-$612.
• B)22.0%.
• C)14.0%.
• D)$5 500.

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Definitions:

Financial Statement

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and statements of cash flows.

Permanent/Temporary

In accounting, refers to the classification of accounts based on their longevity; permanent accounts are cumulative over time (e.g., assets, liabilities, equity), while temporary accounts are closed at the end of each accounting period (e.g., revenues, expenses).

Normal Balance

The side (debit or credit) on which increases to the account are recorded, based on the type of account (asset, liability, equity, revenue, expense).

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.