home / study / business / finance / finance questions and answers / You Are...
90.2K
Verified Solution
Link Copied!
Question
Finance
home / study / business / finance / finance questions and answers / You Are Considering A Project With The Following Data: IRR = 8.7 Percent; PI = .98; NPV = -$393; ... Question: You are considering a project with the following data: IRR = 8.7 percent; PI = .98; NPV = -$393; ... You are considering a project with the following data: IRR = 8.7 percent; NPV = -$393; Payback period = 2.44 years. Which one of the following statements is correct given this information? a. The discount rate used in computing the NPV was less than 8,7%. b. The discounted payback period will be less than 2.44 years. c. The discount rate used to compute the NPV is equal to the IRR. d. The required payback period must be greater than 2.44 years. e. This project should be rejected based on the NPV.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
