Question

D. the projects
86
9. Gidimadjor Itd has estimated that a proposed project's 10-year annual net cash benefit, received each
year end, will be GHC 2,500 with an additional terminal benefit of GHC 5,000 at the end of the tenth
year. Assuming that these cash inflows satisfy exactly Gidimadjor required rate of return of 8 percent,
calculate the present value of the benefits.
A. GHC 16,775
B. GHC 19,090
C. GHC 25,000
D. GHC 30,000
litru
508
1629.6
't
250g
o
quest,
1.08
(tron.
Fin!
(1608)
(108) 9-
Courtsh
0.08
0899495
1.08.
12.43 x
383690
0. Which of the following statements is correct?
A. If the NPV of a project is greater than 0, its PI will equal 0.
B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.
C. If the PI of a project is less than 1, its NPV should be less than 0.
D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV
will be greater than 0.
2727
A project's profitability index is equal to the ratio of the....of a project's future cash flows to the
project's...
A. present value; initial cash outlay 52​

Answer 1

Answer:

the projects

86

9. Gidimadjor Itd has estimated that a proposed project's 10-year annual net cash benefit, received each

year end, will be GHC 2,500 with an additional terminal benefit of GHC 5,000 at the end of the tenth

year. Assuming that these cash inflows satisfy exactly Gidimadjor required rate of return of 8 percent,

calculate the present value of the benefits.

A. GHC 16,775

B. GHC 19,090

C. GHC 25,000

D. GHC 30,000

litru

508

1629.6

't

250g

o

quest,

1.08

(tron.

Fin!

(1608)

(108) 9-

Courtsh

0.08

0899495

1.08.

12.43 x

383690

0. Which of the following statements is correct?

A. If the NPV of a project is greater than 0, its PI will equal 0.

B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.

C. If the PI of a project is less than 1, its NPV should be less than 0.

D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV

will be greater than 0.

2727

A project's profitability index is equal to the ratio of the....of a project's future cash flows to the

project's...

A. present value; initial cash outlay 52