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Which of the Following Is True of a Project Which

Question 11

Multiple Choice

Which of the following is true of a project which has a present value of cash inflow of $20,000 and the present value of the cash outflows of $15,000 (given the assumptions made in calculating the costs and cash inflows) ?


A) The project cannot be carried out as the outflow is high.
B) The net present value of the project is $35,000.
C) The project will require 5 years to break even.
D) The project generates wealth.

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