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
πŸ’¬ Discuss
βœ… Correct Answer: (B) the required additional investment at the end of period 1 is $500

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