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You are considering a project with the following data IRR 87 percent PI 98 NPV $393 Payback period 2 44 years Which one of the following statements is correct given this information

You are considering a project with the following data: IRR = 8.7 percent; PI = .98; NPV = -$393; Payback period = 2.44 years. Which one of the following statements is correct given this information?

a.The discount rate used to compute the profitability ratio was equal to the internal rate of return.

b. The discounted payback period will have to be less than 2.44 years.

c.The required rate of return must be greater than 8.7 percent.

d.This project should be accepted based on the profitability ratio

e.The discount rate used in computing the net present value must have been less than 8.7 percent.

 

Aug 13 2020 View more View Less

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