The following table contains a summary of how a project's balance is expected to change over its 5 year service life at 10% interest. End of Period Project Balance -$1,000 -1,500 600 1 2 3 900 4 1,500 2,000 5 Which of the following statements is incorrect? Select one: O a. The net future of the project at 10% interest is $2,000 b. The required additional investment at the end of period 1 is $500 c. The net present worth of the project at 10% interest is $1,242 d. Within 2 years, the company will recover all its investments and the cost of funds (interest) from the project
The following table contains a summary of how a project's balance is expected to change over its 5 year service life at 10% interest. End of Period Project Balance -$1,000 -1,500 600 1 2 3 900 4 1,500 2,000 5 Which of the following statements is incorrect? Select one: O a. The net future of the project at 10% interest is $2,000 b. The required additional investment at the end of period 1 is $500 c. The net present worth of the project at 10% interest is $1,242 d. Within 2 years, the company will recover all its investments and the cost of funds (interest) from the project
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table contains a summary of how a project's balance is expected to change over its 5
year service life at 10% interest.
End of Period
Project Balance
-$1,000
-1,500
600
1
3
900
4
1,500
2,000
5
Which of the following statements is incorrect?
Select one:
a. The net future of the project at 10% interest is $2,000
b. The required additional investment at the end of period 1 is $500
c. The net present worth of the project at 10% interest is $1,242
d. Within 2 years, the company will recover all its investments and the cost of funds
(interest) from the project
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