If the Net Present Value of a Project Which Costs

Multiple Choice

If the net present value of a project which costs $20,000 is $5,000 when the discount rate is 10 percent, then the:

A) Project's IRR equals 10 percent
B) Project's internal rate of return is greater than 10 percent
C) Net present value of the cash inflows is $4,500
D) Project's cash inflows total $25,000