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Q. |
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.:Which of the following statements is incorrect? |
A. | the net present worth of the project at 10% interest is $1,242 |
B. | the required additional investment at the end of period 1 is $500 |
C. | the net future of the project at 10% interest is $2,000 |
D. | within 2 years, the company will recover all its investments and the cost of funds (interest) from the project |
Answer» B. the required additional investment at the end of period 1 is $500 |
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