What is the average return per year for a project that has an initial investment of $75,000 with an average return of $12,000 per year over 10 years?

a) $1,080

b) $10,800

c) $4,500

d) $11,000

e) $3,200

Question 7

Based on previous answer, what is the Return on investment (ROI) of this project?

a) 8.5

b) 6

c) 4

d) 5.5

e) 3

Question 8

Which of the following best describes a cost-bound project?

a) A project that is constrained by a hard deadline in which the delivery timing is as important as the delivery itself

b) A project that is constrained by safety standards in which the safety aspect of the project is as important as the delivery itself

c) A project that is constrained by a hard budget in which the cost of the project is as important as the delivery itself

d) A and C

e) All of the above

Question 9

What would be the discount factor at year 3 of a 4-year project, if the discount rate is 6%?

a) 0.78

b) 0.84

c) 0.89

d) 0.96

e) None of the above

Question 10

What is the Net Present Value (NPV) of the following project?

Year	Income	Discount rate (%)
1	$5,000	6%
2	$3,500	6%
3	$8,000	6%
4	$11,000	6%

a) $23,261

b) $22,450

c) $25,943

d) $27,500

e) $28,668