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 NPV is $2,194.
B) its IRR is 1.85 percent.
C) its payback period is roughly 3 1/2 years.
D) its profitability index is 0.109.
Answer: C) its payback period is roughly 3 1/2 years.
Business
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You should self-insure against major financial risks
Indicate whether the statement is true or false.
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