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Which of the Following Statements Is True for a Project

Question 13

Multiple Choice

Which of the following statements is true for a project with $20,000 initial cost, cash inflows of $5,800 per year for six years, and a discount rate of 15 percent?


A) Its payback period is roughly 3 1/2 years
B) Its NPV is $2,194
C) Its IRR is 1.85 percent
D) Its profitability index is 0.109

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