A project requires a current expenditure of $300 and expects to generate $100 cash inflows at the end of each of the next 5 years.What conclusion can be drawn from examining an NPV profile for this project?
A) Accept the project if the cost of capital exceeds 20%
B) Accept the project if the cost of capital is below 20%
C) Reject the project if the cost of capital exceeds 10%
D) Reject the project if the cost of capital exceeds 7%
E) Reject the project if the cost of capital exceeds 5%

Question

Quizplus · Accepted Answer

Using a financial calculator:
CF0 = -300, C01 = 100, F01 = 5, IRR CPT = 19.86% or 20%

A Project Requires a Current Expenditure of $300 and Expects