You are considering a project with conventional cash flows, an IRR of 11.63 percent, a PI of
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Question:
You are considering a project with conventional cash flows, an IRR of 11.63 percent, a PI of 1.04, an NPV of $987, and a payback period of 2.98 years. Which of the following statements is correct given this information?
The discounted payback period must be greater than 2.98 years. |
The equilibrium discount rate must be less than 11.63 percent. |
The discount rate used to calculate the net present value was less than 11.63 percent. |
The AAR is equal to the IRR/PI. |
The project should be rejected based on its PI value. |
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