A Prospective Project Under Consideration by the Internet Division of Communications

Multiple Choice

A prospective project under consideration by the Internet Division of Communications Corporation.has an estimated residual income of $(20,000) .If the project requires an investment of $400,000,the

A) project generates a negative return on investment.
B) project's return on investment is zero.
C) project's return on investment is 5% less than the company's target rate.
D) company's target rate is 15%