An Investment Cost $10,000 with Expected Cash Flows of $3,000

question 46

Multiple Choice

An investment cost $10,000 with expected cash flows of $3,000 for 5 years.The discount rate is 15.2382%.The NPV is ___ and the IRR is ___ for the project.

• A)$0; 15.2382%
• B)$3.33; 27.2242%
• C)$5,000; 0%
• D)Can not answer without one or the other value as input.
• E)None of the above.

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Definitions:

Savings Accounts

Financial accounts at banks or other financial institutions that pay interest on deposits, allowing individuals to save money over time.

Maturity Dates

The specific dates on which financial instruments such as bonds or loans are due to be fully paid off.

Money Supply

The total quantity of currency and other liquid instruments circulating in an economy at a particular time.

Banking System

The network of institutions that provide financial services, including the management, distribution, and creation of money among individuals, businesses, and governments.