An Investment Project That Requires a Present Investment of $210,000

An investment project that requires a present investment of $210,000 will have cash inflows of "R" dollars each year for the next five years.The project will terminate in five years.Consider the following statements (ignore income tax considerations) : I) If "R" is less than $42,000,the payback period exceeds the life of the project.
II) If "R" is greater than $42,000,the payback period exceeds the life of the project.
III) If "R" equals $42,000,the payback period equals the life of the project.
Which statement(s) is (are) true?

A) Only I and II.
B) Only I and III.
C) Only II and III.
D) I,II,and III.

Correct Answer:

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