1.

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» C. the net future of the project at 10% interest is $2,000


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