Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9. If the PW of a project which costs $20,000 is -$50,000 when the discount rate is 10%, then the: A) project's IRR equals 10%.
9. If the PW of a project which costs $20,000 is -$50,000 when the discount rate is 10%, then the:
A) project's IRR equals 10%.
B) project's rate of return is greater than 10%.
C) net present value of the cash inflows is $4,500.
D) project's cash inflows total $25,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started