If the net present value of a project that costs $20,000 is $5,000 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.

Question

Quizplus · Accepted Answer

The net present value (NPV) is positive, indicating that the project's rate of return is greater than the discount rate of 10%.

If the Net Present Value of a Project That Costs