Financial Analysis Of A Project


In your role as strategic management accountant, you have completed a financial analysis of a project. The project is:

Accounting Rate of Return (ARR) is 10 percent.
Payback period is seven years
Net Present Value (NPV) is $1million and
Internal Rate of Return (IRR) is 12 percent

Based on these results, which one of the following statements is correct?
A. The project will increase the value of the organization
B. The organization’s discount rate used to calculate NPV is greater than 12 percent
C. The project risk is moderate
D. The project will increase the organization’s Return on Investment (ROI)


This multiple choice question belongs to Finance and it discusses about the financial analysis of a project.

Total Word Count NA

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.