Spring Company Has Invested $20,000 in a Project

question 67

Multiple Choice

Spring Company has invested $20,000 in a project.Spring's discount rate is 12% and the project profitability index on the project is zero.Which of the following statements would be true? I.The net present value of the project is $20,000.
II) The project's internal rate of return is equal to 12%.

• A)Only I.
• B)Only II.
• C)Both I and II.
• D)Neither I nor II.

---

Definitions:

Chromatid Pairing

The alignment of two sister chromatids during cell division, allowing for accurate DNA replication and segregation.

Telophase

The last stage of mitosis and of meiosis I and II when, having reached the poles, chromosomes become decondensed, and a nuclear envelope forms around each group.

Mitosis

The division of the cell nucleus resulting in two daughter nuclei, each with the same number of chromosomes as the parent nucleus; mitosis consists of prophase, prometaphase, metaphase, anaphase, and telophase. Cytokinesis usually overlaps the telophase stage.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that have the same gene sequence, inherited from each parent, and pair up during meiosis.