A project requires a current expenditure of $300 and expects to genera
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%
ANSWER
B
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